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Relationship Between Public Expenditures and Economic Growth in Transition Economies: 1998-2017 Period

Year 2020, Volume 13, Issue 2, 364 - 370, 25.04.2020
https://doi.org/10.25287/ohuiibf.524103

Abstract

A transition economy is an economy which is changing from a centrally planned economy to a market economy. Transition economies undergo a set of structural transformations intended to develop market-based institutions. In this study, the effects of public expenditures on economic growth are examined for transition economies in the period 1997-2018. For this purpose, F and the Hausman tests were carried out. As discussed in the analysis of panel data regression model, the fixed effects model was found to be suitable. The model developed against deviations from assumptions, has been estimated by Driscoll-Kraay robust standard estimator. In the analysis, the effect of 21 transition economies on the economic growth of public expenditures of 1998-2017 period is examined. As a result of the analysis, it is found that public expenditures have a positive effect on the economic growth of the 21 transition economies. In this context, it has been determined that an increase by 1% in public final consumption expenditures raised the real gross domestic product by 0.42%. In addition, this result makes it possible to make inferences about the impacts of transition economies on public resource allocation, the effect of political stability on economic stability, the success of the centrally planned economies on the transition to the free market and the position of transition economies in global competition.

References

  • Abdieva, R., Baigonushova, D., & Ganiev, J. (2017). Relationship between Government Expenditure and Economic Growth in Transition Countries: Case of Kyrgyzstan and Tajikistan. Bilig, 83, 241-258.
  • Ağayev, S. (2012). Kamu harcamaları ve ekonomik büyüme ilişkisi: eski Sovyetler birliği ülkelerinde Wagner yasası analizi (1995-2009). Eskişehir Osmangazi Üniversitesi İktisadi ve İdari Bilimler Dergisi, 7(2).
  • Alexiou, C. (2009). Government spending and economic growth: Econometric evidence from the South Eastern Europe (SEE). Journal of Economic and social research, 11(1), 1-16.
  • Balcerowicz, L. (2002). Post-Communist Transition: Some Lessons. IEA Occasional Paper No. 127.
  • Barbone, L., & Polackova, H. (1996). Public finances and economic transition. MOST: Economic Policy in Transitional Economies, 6(3), 35-61.
  • Bhargava, A., Franzini, L., & Narendranathan, W., (1982). Serial Correlation and the Fixed Effects Model. The Review of Economic Studies, 49(4), pp.533-549.
  • Cheema, N. (2015). Impact of Fiscal Adjustment on Growth in Transition Economies. Bloomsbury.
  • Dincă, M. S., & Dincă, G. (2013). The impact of government expenditures upon economic growth in post-communist countries. Annals of the Alexandru Ioan Cuza University-Economics, 60(1), 126-134.
  • Driscoll C. H. & Kraay A. C., (1998). Consistent Covariance Matrix Estimation with Spatially Dependent Panel Data, The Review of Economics and Statistics 1998 Vol. 80, 549-560.
  • Esen, Ö. & Bayrak, M. (2015). “Kamu Harcamaları ve Ekonomik Büyüme İlişkisi: Geçiş Sürecindeki Türk Cumhuriyetleri Üzerine Bir Uygulama”, Bilig, No: 73, 231-248.
  • Hausman, J., A., (1978). Specification Tests in Econometrics, Econometrica, 46(6), 125-127.
  • Holzner, M. (2010). Inequality, growth and public spending in Central, East and Southeast Europe. Verein" Wiener Inst. für Internat. Wirtschaftsvergleiche"(WIIW).
  • Joskow P.L (2009). Deregulation,” Distinguished Lecture, AEI Center for Regulatory and Market Studies, Unpublished working papers , http://economics.mit.edu/files/3875 (erişim tarihi:19.01.2019)
  • Kolodko, G.W. (2004). Transition to a Market System: Gradualism versus Radicalism. Tiger Working Papers, No: 60.

Geçiş Ekonomilerinde Kamu Harcamaları-Ekonomik Büyüme İlişkisi: 1998-2017 Dönemi

Year 2020, Volume 13, Issue 2, 364 - 370, 25.04.2020
https://doi.org/10.25287/ohuiibf.524103

Abstract

Geçiş ekonomisi, merkezi olarak planlanan bir ekonomiden serbest piyasa ekonomisine dönüşmekte olan bir ekonomiyi ifade etmektedir. Geçiş ekonomileri, piyasa temelli kurumlar geliştirmeyi amaçlayan bir dizi yapısal dönüşümden geçmektedir. Bu çalışmada geçiş ekonomilerinde 1998-2017 dönemine ait kamu harcamalarının ekonomik büyümeye olan etkisi incelenmiştir. Bu kapsamda F testi ve Hausman testi uygulanmıştır. Panel veri regresyon modellerinin ele alındığı analizde, sabit etkiler modelinin uygun olduğu görülmüştür. Model, varsayımlardan sapmalara karşı geliştirilen Driscoll-Kraay dirençli standart tahmincileriyle tahmin edilmiştir. Analizde 21 geçiş ekonomisinin 1998-2017 dönemine ait kamu harcamalarının ekonomik büyümeye olan etkisi ele alınmıştır. Analiz sonucunda, 21 geçiş ekonomisinin iktisadi büyümesinde kamu harcamalarının pozitif etkisi olduğu bulgusuna ulaşılmıştır. Bu bağlamda, kamu nihai tüketim harcamalarındaki %1’lik artış reel gayri safi yurtiçi hasılayı %0,42 oranında artırmaktadır. Ek olarak bu sonuç, geçiş ekonomilerinin kamu kaynak tahsisinde etkinlik, siyasi istikrarın iktisadi istikrara olan etkisi, merkezden planlanan ekonomilerin serbest piyasaya geçişteki başarısı ve geçiş ekonomilerinin küresel rekabetteki konumu gibi hususlarda birtakım çıkarımlar yapmaya imkân tanımaktadır.

References

  • Abdieva, R., Baigonushova, D., & Ganiev, J. (2017). Relationship between Government Expenditure and Economic Growth in Transition Countries: Case of Kyrgyzstan and Tajikistan. Bilig, 83, 241-258.
  • Ağayev, S. (2012). Kamu harcamaları ve ekonomik büyüme ilişkisi: eski Sovyetler birliği ülkelerinde Wagner yasası analizi (1995-2009). Eskişehir Osmangazi Üniversitesi İktisadi ve İdari Bilimler Dergisi, 7(2).
  • Alexiou, C. (2009). Government spending and economic growth: Econometric evidence from the South Eastern Europe (SEE). Journal of Economic and social research, 11(1), 1-16.
  • Balcerowicz, L. (2002). Post-Communist Transition: Some Lessons. IEA Occasional Paper No. 127.
  • Barbone, L., & Polackova, H. (1996). Public finances and economic transition. MOST: Economic Policy in Transitional Economies, 6(3), 35-61.
  • Bhargava, A., Franzini, L., & Narendranathan, W., (1982). Serial Correlation and the Fixed Effects Model. The Review of Economic Studies, 49(4), pp.533-549.
  • Cheema, N. (2015). Impact of Fiscal Adjustment on Growth in Transition Economies. Bloomsbury.
  • Dincă, M. S., & Dincă, G. (2013). The impact of government expenditures upon economic growth in post-communist countries. Annals of the Alexandru Ioan Cuza University-Economics, 60(1), 126-134.
  • Driscoll C. H. & Kraay A. C., (1998). Consistent Covariance Matrix Estimation with Spatially Dependent Panel Data, The Review of Economics and Statistics 1998 Vol. 80, 549-560.
  • Esen, Ö. & Bayrak, M. (2015). “Kamu Harcamaları ve Ekonomik Büyüme İlişkisi: Geçiş Sürecindeki Türk Cumhuriyetleri Üzerine Bir Uygulama”, Bilig, No: 73, 231-248.
  • Hausman, J., A., (1978). Specification Tests in Econometrics, Econometrica, 46(6), 125-127.
  • Holzner, M. (2010). Inequality, growth and public spending in Central, East and Southeast Europe. Verein" Wiener Inst. für Internat. Wirtschaftsvergleiche"(WIIW).
  • Joskow P.L (2009). Deregulation,” Distinguished Lecture, AEI Center for Regulatory and Market Studies, Unpublished working papers , http://economics.mit.edu/files/3875 (erişim tarihi:19.01.2019)
  • Kolodko, G.W. (2004). Transition to a Market System: Gradualism versus Radicalism. Tiger Working Papers, No: 60.

Details

Primary Language Turkish
Subjects Social
Journal Section Articles
Authors

Hasan Önder SARIDOĞAN
AKDENİZ ÜNİVERSİTESİ
0000-0002-6463-4681
Türkiye


Mustafa Alpin GÜLŞEN
AKDENİZ ÜNİVERSİTESİ
0000-0002-2860-4469
Türkiye

Publication Date April 25, 2020
Application Date February 7, 2019
Acceptance Date February 13, 2020
Published in Issue Year 2020, Volume 13, Issue 2

Cite

APA Sarıdoğan, H. Ö. & Gülşen, M. A. (2020). Geçiş Ekonomilerinde Kamu Harcamaları-Ekonomik Büyüme İlişkisi: 1998-2017 Dönemi . Ömer Halisdemir Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi , 13 (2) , 364-370 . DOI: 10.25287/ohuiibf.524103

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