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Journals / Finans Ekonomi ve Sosyal Araştırmalar Dergisi / 2021 / Cilt: 6 - Sayı: 3

THE RELATIONSHIP BETWEEN GOVERNMENT EXPENDITURES, ECONOMIC GROWTH AND INFLATION IN OECD COUNTRIES

OECD ÜLKELERİNDE HÜKÜMET HARCAMALARI, EKONOMİK BÜYÜME VE ENFLASYON ARASINDAKİ İLİŞKİ "THE RELATIONSHIP BETWEEN GOVERNMENT EXPENDITURES, ECONOMIC GROWTH AND INFLATION IN OECD COUNTRIES"

Suna KORKMAZ
Hüseyin GÜVENOĞLU
Pages
490–498
Publication Date
2021-09-30
DOI
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AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

It was also found that there was a unidirectional causality relationship from inflation to government expenditures and from government expenditures to economic growth.

📌 3 Key Takeaways

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Objective & Hypothesis:Governments will want to achieve their highest priority goal according to their economic circumstances.
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Key Findings & Data:In this study, the relationship between government expenditures, economic growth and inflation in 9 randomly selected OECD countries (France, Germany, Italy, UK, Portugal, Hungary, Spain, Finland and Poland) was analyzed by panel causality method using annual data for the period 2010-2019.
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Conclusion & Impact:It was also found that there was a unidirectional causality relationship from inflation to government expenditures and from government expenditures to economic growth.
🔬Design:Research Article
📍Scope:2010-2019 Verileri
⚙️Variables:Hükümet Harcamaları · Enflasyon · Ekonomik Büyüme

Abstract

Governments will want to achieve their highest priority goal according to their economic circumstances. Governments use many tools to achieve these goals. Economic growth and price stability are among the main objectives which fall within the scope of governments. One of the most important tools that governments will deploy to achieve these goals government expenditures, which is a fiscal policy tool. In this study, the relationship between government expenditures, economic growth and inflation in 9 randomly selected OECD countries (France, Germany, Italy, UK, Portugal, Hungary, Spain, Finland and Poland) was analyzed by panel causality method using annual data for the period 2010-2019. As a result of the analysis, a bidirectional causality relationship was found between economic growth and inflation in the period analyzed. It was also found that there was a unidirectional causality relationship from inflation to government expenditures and from government expenditures to economic growth.

Özet

Hükümetler, ekonomik koşulları doğrultusunda en yüksek önceliğe sahip hedeflerine ulaşmak isteyeceklerdir. Bu hedeflere ulaşmak isteyen hükümetler birçok araç kullanmaktadır. Ekonomik büyüme ve fiyat istikrarı hükümetlerin görev alanına giren temel hedefler arasında yer almaktadır. Hükümetlerin bu hedeflere ulaşmak için kullanacağı en önemli araçlardan biri maliye politikası aracı olan kamu harcamalarıdır. Bu çalışmada rassal olarak seçilen 9 OECD ülkesinde (Fransa, Almanya, İtalya, Birleşik Krallık, Portekiz, Macaristan, İspanya, Finlandiya ve Polonya) hükümet harcamaları, ekonomik büyüme ve enflasyon arasındaki ilişki 2010-2019 dönemine ait yıllık veriler kullanılarak panel nedensellik yöntemi ile analiz edilmiştir. Analiz sonucunda incelenen dönemde ekonomik büyüme ile enflasyon arasında çift yönlü bir nedensellik ilişkisi bulunmuştur. Ayrıca enflasyondan hükümet harcamasına doğru ve hükümet harcamasından da ekonomik büyümeye doğru tek yönlü bir nedensellik ilişkisi olduğu tespit edilmiştir. Governments will want to achieve their highest priority goal according to their economic circumstances. Governments use many tools to achieve these goals. Economic growth and price stability are among the main objectives which fall within the scope of governments. One of the most important tools that governments will deploy to achieve these goals government expenditures, which is a fiscal policy tool. In this study, the relationship between government expenditures, economic growth and inflation in 9 randomly selected OECD countries (France, Germany, Italy, UK, Portugal, Hungary, Spain, Finland and Poland) was analyzed by panel causality method using annual data for the period 2010-2019. As a result of the analysis, a bidirectional causality relationship was found between economic growth and inflation in the period analyzed. It was also found that there was a unidirectional causality relationship from inflation to government expenditures and from government expenditures to economic growth

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Cite This Article

KORKMAZ, S., GÜVENOĞLU, H. (2021). THE RELATIONSHIP BETWEEN GOVERNMENT EXPENDITURES, ECONOMIC GROWTH AND INFLATION IN OECD COUNTRIES. Finans Ekonomi ve Sosyal Araştırmalar Dergisi, Cilt: 6 - Sayı: 3, 490–498. https://ajindex.com/articles/758372

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