The Relationships between Public Expenditure and Sectorial Employment in Turkey
Journal Title: BİLTÜRK Journal of Economics and Related Studies - Year 2019, Vol 1, Issue 2
Abstract
Public expenditure is an effective fiscal policy instrument on income, welfare and employment. But, the differences in the production and demand conditions of the sectors in the economy might cause the effects of public expenditures on employment to be felt differently on sectors. In this study, causality relationship between employment and public expenditure in Turkey's economy, have analyzed with Toda-Yamamoto method for twenty-one different sectors. According to the results that analyzed the period 2009-2018, it has observed that the sectors which have causality relations from public expenditures to employment is relatively low for share in total employment. In addition, it has seen that a causality relation between public expenditure and manufacturing industry employment could not be determined. This case means that the use of public expenditures is limited in order to increase employment.
Authors and Affiliations
Hakan Ergec, İrfan Ersin
Keywords
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