The direction of the causality relationship between public expenditures and economic growth is one of the most controversial issues of the literature, which also causes great disagreements in the design process of economic policies. There are two approaches to this subject, which are opposite each other and called “Wagner’s Law” and “Keynesian Hypothesis”. This paper aims to examine the validity of Wagner’s law and Keynesian proposition in Turkey using Autoregressive Distributed Lag (ARDL) model over the period of 1998-2016. The findings supported the “Keynesian Hypothesis”, which advocates a one-way causality relationship from public spending to national output. More specifically, the results of the study showed that the effect of public expenditures on economic growth was positive in the short term and negative in the long term. From an economic policy standpoint, it can be argued that policymakers can promote Turkish economic growth through expansionary fiscal policies in the short run.
In today?s economies, where commerce and the economy are strongly
interrelated, the relationship between current account and financial account
has become crucial. However, economists have not reached a consensus
regarding the direction of the causality relationship between capital and
current accounts. Our study aims to contribute to the literature by
determining the direction of the causality relationship between current and
financial accounts in Turkey, applying the Johansen Cointegration Test and
the Vector Error Correction (VEC) model to quarterly data for 2002-2018. The
empirical results show that the causality relationship in Turkey runs from
the financial account to the current account. This means that capital
inflows to Turkey have the potential to deteriorate the current account
balance. Therefore, it is of crucial importance that Turkey implement
policies to manage the financial account in order to provide a current
account balance.
Occupational accidents are among the most important issues of the agenda of working life in Turkey recently. Recently the causes and consequences of occupational accidents which are related to human, occupational and environmental factors have received great attention from the researchers but it has been paid little attention to focused on economic factors. The purpose of this paper is to make a contribution to redressing this gap by examining the relationship between fatal occupational accidents and economic development over the period of 1980 to 2012 for Turkey. In this context, bounds testing approach which is also known as autoregressive distributed lag model is performed. The results indicate the existence of positive relationship between gross domestic product per capita and fatal occupational accidents in the short-run while in the long run this turns out to be in a negative way via economic growth and changes in structure of the economy.
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