THE EFFECTS OF PUBLIC EXPENDITURES ON DEVELOPMENT: CASE OF TURKEY

With the ever-increasing effect of globalization, many technological developments and new production styles emerged in the period after 1980. In this period, as the share in the budget of public sector expenditures increases, the expense types changed accordingly. The aim of this study in this framework is to investigate the public expenditures 'effects on development. In this context, the effect of expenditures on development is investigated with the instance of Turkey. The center of this investigation is comprised of 81 provinces. The datum that belongs to the years between 2008-2012 in these cities has been examined in detail. In the constituted search model axis, the Index of Socio-economic Innovation for 18 provinces has been formed according to the Human Development Index (HDI). Afterwards, according to the functional classification, the relationship between Public Expenditures, Political Variables and the Index of Socio-economic Development is dealt by use of Panel Data Analysis method. In consequence of analysis conducted, it has been concluded that the large part of Public Expenditures has a positive and significant effect on Socio-economic Innovation Index