In this study, the relationship between types of government spending (current, investment, interest, transfer), and gross domestic product are analyzed using the data for the period 1975-2015 in Turkey. According to the ARDL cointegration method, there is no long-term relationship between the variables. Then, the short-term relationship between variables was examined by VAR model, Toda-Yamamoto (TY) and Hacker-Hatemi J causality tests. According to VAR model, the most important variable explaining the GDP is interest expenditures. According to the TY and Hacker-Hatemi J causality tests, the causality was determined from interest expenditures to GDP, and from the GDP to interest expenditures, respectively.
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