Özet:

Poverty is seen as an important problem not only for developing countries, but also for developed countries. In this context, governments use public expenditures as a policy tool to provide efficiency in the fight against problems such as poverty. Therefore, it is necessary to consider the relationship between poverty and public spending. In the current study the relationship between poverty and public expenditures is analyzed for 8 selected countries between 2004 and 2018. The study contributes to the literature by analyzing the effect of health expenditures and military expenditures on poverty with current data through the relevant method and data set. Two models are used in the study. In the first model, the relationship between poverty and health expenditures, and in the second model, the relationship between poverty and military expenditures are examined. Kao Panel Cointegration method is used in the analysis. In addition, Panel VECM method is applied to evaluate the causality relationship. Finally, the Panel DOLS method is used to determine the long-term correlation coefficient. According to the results, it has been determined that there is a long-term relationship between poverty and health expenditures in the first model, and a strong one-way causality relationship from health expenditures to poverty at the 1% significance level. In addition, 1 unit increase in health expenditures reduces poverty by 0.02 units. In the second model, it is seen that there is a long-run relationship between poverty and military expenditures. In addition, it has been determined that there is a 10% significant causality relationship from military expenditures to poverty, and a one-unit increase in military expenditures increases poverty by 0.03 units.

Anahtar Kelimeler: