The Effect of Public Expenditures on Human Development in OECD Countries:Panel Data Analysis

Public expenditures can have many economic and social impacts as they cover various expenditures. In this study, the effect of public expenditures on human development in 26 OECD countries in the period of 1995-2017 is investigated by panel data analysis method. In the study, according to Dumitrescu and Hurlin (2012) test results, one-way causality relationship from human development to public expenditures is determined. On the other hand, according to Konya (2006) panel bootstrap causality test, the causality relationship is determined in 3 countries from public expenditures to human development and in 4 countries from human development to public expenditures. According to Konya (2006) causality test, 4 out of 7 relationships are negative and 3 are positive.