kolçak, menşure atatürk üniversitesi - iktisadi ve idari bilimler fakültesi - iktisat bölümü, Turkey , kalabak, ali yasin yüzüncü yıl üniversitesi - erciş işletme fakültesi - işletme bölümü, turkey

In Short Term Relation Between Social Expenditures with Economic Growth, Panel Data Analysis for 29/28 OECD Countries(1998-2012)

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Internal growth model believes that human capital expenditures have positive effect on the growth. This idea suggests that social expenditures have positive relation with economic growth as well, yet conducted studies reveal different outcomes. Purpose of the study; to investigate the relation between social expenditures and economic growth in OECD countries including Turkey through panel data analysis. Investigation results shows that subcomponents of social expenditures, namely, education, health and social proteciton expenses have different effects on economic growth. According to study, education and health expenditures have significantly positive effect on economic growth, whereas social protection expenditures has negative effect on economic growth. All these results are statistically significant. When we remove the Turkey from 29 OECD members, effect of education expenditures on economic growth decreases excessively and it is lost statistically significance. At the same time positive effect of health expenditures on economic growth has partial decrement. Also negative effect of social protection expenditures on economic growth has partial decrement. However, facing with issue of the limited data affected both the model (unsteady panel instead of steady panel) and the possible outcomes of the analysis.

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Health Expenses , Education Expenses , Social Protection Expenses , Economic Growth , Panel Data Analysis

Journal Of Economics an‎d Administrative Sciences

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