RELATIONSHIP BETWEEN PUBLIC EXPENDITURES, TAX REVENUE, INSTITUTIONAL QUALITY AND ECONOMIC GROWTH: THE CASE OF E7 COUNTRIES

Abstract

This study aims to analyze the relationships between public expenditures, tax revenue, institutional quality, and gross domestic product in the E7 countries during the period from 2002 to 2020. To determine the long-term relationship between the variables, the Westerlund (2008) cointegration test was used, and it was found that the variables move together in the long run. Long-term coefficients were calculated using the Augmented Mean Group estimator, and it was found that the impact of public expenditures and institutional quality on economic growth is negative. However, it was observed that tax revenue is not statistically significant in the long term. The causality relationship between the variables was examined using the Dumitrescu and Hurlin (2012) panel causality test, and it was determined that there is a unidirectional causality relationship between institutional quality and economic growth, tax revenue and economic growth, and economic growth and public expenditures. Additionally, unidirectional causality relationship was found from institutional quality to tax revenue and from public expenditures to institutional quality. These findings highlight the importance for E7 countries to focus on institutional reforms, public expenditures, tax collection systems, and policies that support economic growth to enhance the long-term economic growth.

Keywords

• Public expenditure
• tax revenue
• ınstitutional quality
• economic growth
• panel cointegration

KAMU HARCAMALARI, VERGİ GELİRİ, KURUMSAL KALİTE VE EKONOMİK BÜYÜME İLİŞKİSİ: E7 ÜLKELERİ ÖRNEĞİ

Abstract

Bu çalışmada, 2002-2020 dönemi itibariyle E7 ülkelerinde kamu harcamaları, vergi geliri, kurumsal kalite ve gayri safi yurtiçi hasıla arasındaki ilişkileri analiz etmek amaçlanmıştır. Değişkenler arasındaki uzun dönem ilişkiyi belirlemek için Westerlund (2008) eşbütünleşme testi kullanılmış ve değişkenlerin uzun dönemde birlikte hareket ettikleri bulunmuştur. Uzun dönem katsayıları Arttırılmış Ortalama Grubu kullanılarak hesaplanmış ve kamu harcamaları ile kurumsal kalitenin ekonomik büyüme üzerindeki etkisinin negatif olduğu tespit edilmiştir. Ancak vergi gelirinin uzun dönemde istatistiksel olarak anlamlı olmadığı gözlemlenmiştir. Değişkenler arasındaki nedensellik ilişkisi Dumitrescu ve Hurlin (2012) panel nedensellik testi ile incelenmiş, kurumsal kalite ile ekonomik büyüme, vergi geliri ile ekonomik büyüme ve ekonomik büyüme ile kamu harcamaları arasında tek yönlü nedensellik ilişkisi olduğu tespit edilmiştir. Ayrıca, kurumsal kaliteden vergi gelirine ve kamu harcamalarından kurumsal kaliteye doğru tek yönlü nedensellik ilişkisi bulunmuştur. Bu bulgular, E7 ülkelerinin uzun dönemli ekonomik büyümelerini artırmak için kurumsal reformlara, kamu harcamalarına, vergi toplama sistemlerine ve ekonomik büyümeyi destekleyici politikalara odaklanmalarının önemini vurgulamaktadır

Keywords

• Kamu harcamaları
• vergi geliri
• kurumsal kalite
• ekonomik büyüme
• panel eşbütünleşme

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