Testing the validity of the BARS curve for Turkey
This study has two main aims: to test the validity of the BARS curve in Turkey for the period 1974-2016 and to estimate the optimal government size for that period and compare it with the current situation. It uses the Autoregressive Distributed Lag bounds test and quadratic equation method...
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Faculty of Economics, Belgrade
2022-01-01
|
| Series: | Ekonomski Anali |
| Subjects: | |
| Online Access: | http://www.doiserbia.nb.rs/img/doi/0013-3264/2022/0013-32642232153D.pdf |
| _version_ | 1811222553066209280 |
|---|---|
| author | Durucan Ayşegül |
| author_facet | Durucan Ayşegül |
| author_sort | Durucan Ayşegül |
| collection | DOAJ |
| description | This study has two main aims: to test the validity of the BARS curve in
Turkey for the period 1974-2016 and to estimate the optimal government size
for that period and compare it with the current situation. It uses the
Autoregressive Distributed Lag bounds test and quadratic equation methods.
The empirical findings of the study confirm the validity of the BARS curve
by providing strong evidence for the existence of an inverted U-shaped
long-run relationship between government size and economic growth. Unlike
many previous studies that use a single proxy measure for government size,
this study uses all available fundamental indicators and their
sub-components. The empirical results show that for the period studied all
proxy measures of government size exceed the optimal except for total
central government budget expenditure and defence expenditure. Therefore,
decreasing the size of the government, other than for these two indicators,
will increase economic growth in the long run. |
| first_indexed | 2024-04-12T08:19:04Z |
| format | Article |
| id | doaj.art-a3c96510a6784784ba2c2c204541708a |
| institution | Directory Open Access Journal |
| issn | 0013-3264 1820-7375 |
| language | English |
| last_indexed | 2024-04-12T08:19:04Z |
| publishDate | 2022-01-01 |
| publisher | Faculty of Economics, Belgrade |
| record_format | Article |
| series | Ekonomski Anali |
| spelling | doaj.art-a3c96510a6784784ba2c2c204541708a2022-12-22T03:40:41ZengFaculty of Economics, BelgradeEkonomski Anali0013-32641820-73752022-01-016723215319210.2298/EKA2232153D0013-32642232153DTesting the validity of the BARS curve for TurkeyDurucan Ayşegül0Kırıkkale University, Department of Public Finance, Kırıkkale, TurkeyThis study has two main aims: to test the validity of the BARS curve in Turkey for the period 1974-2016 and to estimate the optimal government size for that period and compare it with the current situation. It uses the Autoregressive Distributed Lag bounds test and quadratic equation methods. The empirical findings of the study confirm the validity of the BARS curve by providing strong evidence for the existence of an inverted U-shaped long-run relationship between government size and economic growth. Unlike many previous studies that use a single proxy measure for government size, this study uses all available fundamental indicators and their sub-components. The empirical results show that for the period studied all proxy measures of government size exceed the optimal except for total central government budget expenditure and defence expenditure. Therefore, decreasing the size of the government, other than for these two indicators, will increase economic growth in the long run.http://www.doiserbia.nb.rs/img/doi/0013-3264/2022/0013-32642232153D.pdfgovernment sizeeconomic growthardl bounds testturkey |
| spellingShingle | Durucan Ayşegül Testing the validity of the BARS curve for Turkey Ekonomski Anali government size economic growth ardl bounds test turkey |
| title | Testing the validity of the BARS curve for Turkey |
| title_full | Testing the validity of the BARS curve for Turkey |
| title_fullStr | Testing the validity of the BARS curve for Turkey |
| title_full_unstemmed | Testing the validity of the BARS curve for Turkey |
| title_short | Testing the validity of the BARS curve for Turkey |
| title_sort | testing the validity of the bars curve for turkey |
| topic | government size economic growth ardl bounds test turkey |
| url | http://www.doiserbia.nb.rs/img/doi/0013-3264/2022/0013-32642232153D.pdf |
| work_keys_str_mv | AT durucanaysegul testingthevalidityofthebarscurveforturkey |