This article provides an empirical analysis of the relationship between research and development (R&D) expenditures and economic growth, and determines whether this relationship differs with respect to the degree of development. In this regard, the study utilises data from 52 countries from 1996 to 2010 and employs a dynamic panel data model. The research finds that R&D expenditure has a positive and significant effect on economic growth for all countries in the long run, which is consistent with the relevant literature. For developing countries, the effect is weak in the short run but strong in the long run, as expected. The study adds new empirical evidence to the literature. JEL Classifications: E24, O11, O32, O47
Purpose The purpose of this paper is to provide new empirical evidence on the relationship between social expenditure and poverty in Turkey. Design/methodology/approach There are voluminous studies in the literature and many of which contain condradictory results. The authors use panel error correction models and employ Turkish statistical territorial units data (26 regions) covering the period 2004-2011 in the analysis. Findings The authors have found that in the short run, there is a negative relationship between social expenditure and poverty, as expected. In the long run, however, there exists a positive relation between them. The authors utilize expenditure on education as one component of social expenditure, and the authors obtain a negative relationship between education expenditure and poverty, both in the short run and in the long run. Social implications Poverty is an important social problem that more studies on this subject should examine various aspects and find policies to alleviate it. Originality/value Literature on poverty and social spending are growing and their results are contradictory. However, this paper clearly and significantly provides new empirical evidence on the effect of social spending on reducing poverty using Turkish data. This kind of study is hardly found for developing countries like Turkey. It contributes to the literature.
Purpose The tax burden, defined as the ratio of the collected taxes in a particular period against the total product, is commonly used to determine the effect of fiscal and tax policies on the socioeconomic structure. The purpose of this study is to examine how the changes in some macroeconomic indicators affect the tax burden. Design/methodology/approach System generalized method of moments approach is used for 34 Organisation for Economic Co-operation and Development (OECD) members in the period of 1993-2016. Findings Based on the research findings, variables such as income per capita, foreign trading volume, the capacity of employment, unemployment and economic share of industry sector effect tax burden in a statistically significant and positive direction. The reason that lies behind the positive effect of unemployment on tax burden is the fact that the sense of social state is not abandoned. Thus, it is predicted that the state will increase public transfer expenditures in the short term due to unemployment, this increase will impose a financial burden on the public sector both in the medium and long term and finally, there will be an increase in the tax burden. Originality/value Results in the literature suggest that there are many reasons for increasing tax burden such as socio-economic development, financial and organizational structure and the globalization process. However, according to this study, it seems that gross domestic product per capita, the size of the industry sector, openness, employment capacity and unemployment rate also have a positive and significant effect on tax burden in the long run. Ultimately, these results demonstrate that tax burden, one of the most important indicators of the public sector size in the sample of the states and period in hand, is influenced positively by all independent variables and increases slightly but surely. These results suggest that the tax state is still a determinative factor in the socioeconomic field within its taxation tools.
Purpose This study aims to examine the relationship between public sector education expenditure and the GINI coefficient as a measure of injustice in income distribution. Design/methodology/approach Data from 31 European countries gathered from 2004 to 2011 were analyzed using panel error correction models. Findings According to the study’s findings, a relationship between education expenditures and the GINI coefficient exists. There is a 1 per cent increase for the European countries examined in this study in their rate of education expenditure in gross domestic product (GDP), which raises the GINI coefficient by 0.20 per cent in the short-term and decreases it by 0.22 per cent in the long-term, as expected. Thus, an increase in the proportion of education expenditures in GDP affects the GINI coefficient in a statistically significant, negative way over the long-term. Originality/value This study fills a gap in the literature by determining whether the interaction between education expenditure and GINI coefficient changes in the short- and long-term. The results show that education expenditure generates positive results particularly by lowering income inequality in the long-term. This interaction can be more clearly observed in developing countries. So this conclusion adds an important empirical evidence to the literature and it may contribute in forming policies toward reducing income inequality.
The purpose of this study is to determine how the changes in GDP per capita, which is an indicator of economic development, affect the tax burden in the short and long term in Turkey. In this context, the study utilises data about GDP per capita and tax burden from 1924 to 2014 and employs the Autoregressive Distributed Lag (ARDL) bounds testing approach. Although many studies in the literature has been reached that there is a positive relationship between these variables, this study shows this interaction occurs only in the long term. In fact, the research finds a 1% increase in GDP per capita will bring about a 0.07% increase in tax burden in the long run. For short term there is a negative relationship between these variables but it is not statistically significant. Keywords: Tax Potential, Tax Burden, ARDL-Error Correction Model, Tax Policy, Economic Growth.JEL Classification Codes : H11, H20, H21, H24, H29. ÖzBu çalışmanın amacı, iktisadi gelişmişliğin bir göstergesi niteliğindeki kişi başına düşen GSYİH'da meydana gelecek değişikliklerin kısa ve uzun dönemde vergi yükü üzerinde ne gibi etkileri olacağını Türkiye özelinde saptayabilmektir. Bu bağlamda 1924-2014 zaman aralığında kişi başına düşen GSYİH ve vergi yükü değişkenleri esas alınarak ARDL sınır testi yaklaşımından yararlanılmıştır. Literatürde yer alan pek çok çalışmada değişkenler arasında pozitif yönlü bir ilişki olduğu bulgusuna ulaşılmışsa da çalışma sonucunda bu etkileşimin ancak uzun dönemde ortaya çıktığı tespit edilmiştir. Nitekim kişi başına düşen GSYİH'da meydana gelecek %1'lik bir artış uzun dönemde vergi yükü üzerinde yaklaşık %0,07 düzeyinde pozitif yönlü bir etki meydana getirmektedir. Kısa dönemde ise istatistiksel açıdan anlamlı olmamakla birlikte bu etkileşim ters yönlüdür.
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