The main objective of this paper is to analyze empirically the effects of government spending on private investment, evaluating the existence of crowding-out/-in effects, in Turkey for the 1975-2011 period. In contrast to previous studies, we employed in the paper the modified version of David A. Aschauer?s (1989) model, which allows us to see the effects of each component of government spending taking place in the Turkish budget system. The empirical findings of the paper showed that government current transfer spending, government current spending, and government interest spending crowdout private investment, whereas government capital spending crowds-in private investment in Turkey.

No abstract

This paper studies the role of fiscal policy, which has recently come to the fore as a rescuer during economic crises and focuses very much on its historical role in economic crises in general and in the recent crisis in particular.

This paper studies an empirical analysis of the causality between education expenditure, health expenditure, and economic growth for the selected eight developing countries (Argentina,

This study empirically examines the validity of the twin and triple deficits hypotheses using bootstrap panel Granger causality analysis and an annual panel data set of six post-communist countries (Russia, Poland, Ukraine, Romania, the Czech Republic, and Hungary) from 1994 to 2012. Our findings, based on panel data analysis under cross-sectional dependence and country-specific heterogeneity, support neither the twin deficits hypothesis nor its extended version, the triple deficits hypothesis, for any of the countries considered. In other words, we find no Granger-causal relationship between budget deficits and trade (or current account) deficits or among budget deficits, private savings-investment deficits, and trade deficits.