After the 2008 Global Financial Crisis in Turkey Emerging Public Expenditure Policies Impact on Employment Rates

The global financial crisis, which began in USA in 2008, had effected the whole world countries including Turkey as a result of globalization and integrated economies. The crisis caused by risky and non-returnable loans in mortgage markets in the United States negatively affected financial and real markets globally. In this framework, countries developed various monetary and fiscal policies in order to mitigate the adverse effects of the crisis on economies. In this study, the relationship between the public expenditure, a significant instrument of fiscal policies implemented by the government, and the employment rates for the post-crisis period is explained. In addition to this explanation, the relationship between public expenditure and employment rates between 2006Q1-2016Q4 was analyzed according to the Toda- Yamamoto Granger causality test. As a result, unidirectional causality running from post- crisis public expenditure policies to employment rates is determine