Özet:

The causal link between public expenditure and economic growth, if necessary, has very different views on the size of each other. According to the classical economy, expanding financial policies have a negative impact on economic growth, but Keynesian acknowledges that public expenditure will increase income with the striking mechanism. On the other hand, the Ricardocu Equality Hypothesis claims that the increase in public spending will not affect economic growth. In Wagner’s hypothesis, it is assumed that the economic growth is a right relationship to public spending. The link between these variables is of great importance, especially when it comes to the determination of macroeconomic policies to be implemented. This study examines the causal relationship between public expenditure and economic growth based on data from the 1950-2011 period with the asymmetric causal test Hatemi-J (2011; 2012) for the G7 countries. According to the findings obtained; in Germany, the United Kingdom, Italy, Japan, and Canada, from the size of the public sector to the economic growth; in the U.S. and Japan, there is a causal relationship to the size of the public sector. In France, there is no relationship between the variables.

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