THE EFFECT OF THE PUBLIC EXPENDITURES ON THE ECONOMIC GROWTH IN TURKEY IN THE PERIOD 1980-2012

To what extent the state will have an impact on the market has been discussed for many years. The social state mentality, which emerged after the Great Economic Depression in 1929, has considered the level of impact on market in scope of the size of the public expenditures. There have been lots of studies and researches about the effect of the public expenditures on the economic growth. In order to find out this relationship, different kinds of techniques have been used. In this study particularly the educational, health, social security and justice expenditures and their long term impact on the economic growth in Turkey during the period between 1980 and 2012, has been examined. This relationship has been researched by using the DurbinWatson, Granger and Johansen cointegration tests. At the end of the study, the empirical findings showed that the educational, health, social security and justice expenditures, and fixed capital investments have affected found out the economic growth during the long term period. In addition to this, it has been determined that there are long term relationship between these variables.