Abstract:

The aim of this study is to study the impact of public spending on economic growth in the period between 1990 and 2017 by different methods for Turkey. Method - The first part of the study provides a conceptual explanation and literary summary of the relevant subject and the second part of the study provides information about the model created and the method to be used. In the third part, the impact of public spending and commercial transparency on the dependent variable GDP was studied through the Gregory-Hansen integration test and the ARDL limit test. Furthermore, as the empirical model was established on the basis of the Cobb-Douglas production function, the capital and labour variable were also included as an independent variable in the model. The data used in the study was obtained from the World Bank’s database. Results and Debate - The findings obtained in the study have shown that the long- and short-term public spending, the accumulation of capital and labour have a positive impact on national income, and that the long- and short-term impact of the 2007 breakdown on GDP has a negative and statistically meaningful impact. In the short term, public spending and commercial disclosure have also concluded that GDP is not the correct cause, capital accumulation and labour is the one-way cause to GDP, and in the long term, capital accumulation, labour and GDP is the double, commercial disclosure and public spending is the one-way cause relationship to GDP.

Keywords: