Bağdigen, Muhlis and Çetintaş, Hakan (2003): Causality between Public Expenditure and Economic Growth: The Turkish Case. Published in: Journal of Economic and Social Research , Vol. 1, No. 6 (2004): pp. 53-72.
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This paper takes into account recent advances in econometric techniques and examines Wagner’s Law of long-run relationship between public expenditure and GDP for the Turkish case over the period of 1965-2000. The relationship is supposed public expenditure to be an outcome, not cause, of growth in GDP. Causality must run from GDP to public expenditure, not other ways around. Using the co-integration test and the Granger Causality test, we empirically find no causality in both directions; neither Wagner’s Law nor Keynes hypothesis is valid for the Turkish case.
|Item Type:||MPRA Paper|
|Original Title:||Causality between Public Expenditure and Economic Growth: The Turkish Case.|
|Keywords:||Public expenditure, economic growth|
|Subjects:||H - Public Economics > H5 - National Government Expenditures and Related Policies > H54 - Infrastructures ; Other Public Investment and Capital Stock
O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O40 - General
|Depositing User:||Muhlis Bagdigen|
|Date Deposited:||05. May 2008 12:49|
|Last Modified:||16. Mar 2015 05:18|
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