Özet:

The impact of social security spending on economic growth varies according to economic approaches in the economy. There are two different approaches to the impact of social security spending on economic growth. Because social security expenditure is public expenditure, according to the classics, the increase has a negative impact on growth with the exclusion effect. According to Keynesian approach, the increase in these expenditure will increase economic growth with a dramatic impact. There are empirical studies in literature that confirm both opinions. This study examines the social security expenditure, capital accumulation, overall factor efficiency (TFV) and the impact of the democracy index on economic growth in the OECD countries' economies for 22 countries with the same number of data to be a balanced panel for the period 1990-2017. The study found that the increase in the overall factor efficiency and the increase in the stock of physical capital increased economic growth according to literature. As social security expenditure increases national income, national income increases.