Public Expenditures, Economic Growth and Income Inequality: Empirical Evidence from the Commonwealth of Independent States
This study has examined the causality relationship between public expenditures, economic growth and income inequality for transition economies called the Commonwealth of Independent States (CIS). In the study, in which the 1998-2019 period was analyzed, the effects of public expenditures on economic...
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| Format: | Article |
| Language: | English |
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Istanbul University Press
2022-07-01
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| Series: | İktisat Politikası Araştırmaları Dergisi |
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| Online Access: | https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/B0B5EBFEC06343D2912B88678D26F111 |
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| author | Mürşit Recepoğlu |
| author_facet | Mürşit Recepoğlu |
| author_sort | Mürşit Recepoğlu |
| collection | DOAJ |
| description | This study has examined the causality relationship between public expenditures, economic growth and income inequality for transition economies called the Commonwealth of Independent States (CIS). In the study, in which the 1998-2019 period was analyzed, the effects of public expenditures on economic growth and income inequality were determined with the bootstrap panel causality test. Bootstrap panel causality test results show that there is a one-way causality relationship from public expenditures to economic growth for Armenia, Belarus, and Kazakhstan. On the other hand, a one-way causality relationship has been determined from public expenditures to income inequality in Belarus and Kazakhstan, and from income inequality to public expenditures in Kyrgyzstan. In Moldova and Russia, however, no causal relationship could be obtained between the variables. The overall evaluation of the findings obtained from the panel causality tests concluded that public expenditures in CIS member countries are closely related to both economic growth and income inequality. CIS member countries need state interventions in order for the market system to fully settle in transition period. However, implementing policies that do not exclude private investments and do not harm the functioning of the market economy should be elaborated during practicing public expenditure policies in these countries in transition. |
| format | Article |
| id | doaj-art-67ec2ea3fc6f4a6a909780975a105d4e |
| institution | OA Journals |
| issn | 2148-3876 |
| language | English |
| publishDate | 2022-07-01 |
| publisher | Istanbul University Press |
| record_format | Article |
| series | İktisat Politikası Araştırmaları Dergisi |
| spelling | doaj-art-67ec2ea3fc6f4a6a909780975a105d4e2025-08-20T01:51:16ZengIstanbul University Pressİktisat Politikası Araştırmaları Dergisi2148-38762022-07-019229331410.26650/JEPR1103290123456Public Expenditures, Economic Growth and Income Inequality: Empirical Evidence from the Commonwealth of Independent StatesMürşit Recepoğlu0https://orcid.org/0000-0002-6861-2607Gümüşhane Üniversitesi, Gumushane, TurkiyeThis study has examined the causality relationship between public expenditures, economic growth and income inequality for transition economies called the Commonwealth of Independent States (CIS). In the study, in which the 1998-2019 period was analyzed, the effects of public expenditures on economic growth and income inequality were determined with the bootstrap panel causality test. Bootstrap panel causality test results show that there is a one-way causality relationship from public expenditures to economic growth for Armenia, Belarus, and Kazakhstan. On the other hand, a one-way causality relationship has been determined from public expenditures to income inequality in Belarus and Kazakhstan, and from income inequality to public expenditures in Kyrgyzstan. In Moldova and Russia, however, no causal relationship could be obtained between the variables. The overall evaluation of the findings obtained from the panel causality tests concluded that public expenditures in CIS member countries are closely related to both economic growth and income inequality. CIS member countries need state interventions in order for the market system to fully settle in transition period. However, implementing policies that do not exclude private investments and do not harm the functioning of the market economy should be elaborated during practicing public expenditure policies in these countries in transition.https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/B0B5EBFEC06343D2912B88678D26F111public expenditureseconomic growthincome inequalityfiscal policypanel causality analysis |
| spellingShingle | Mürşit Recepoğlu Public Expenditures, Economic Growth and Income Inequality: Empirical Evidence from the Commonwealth of Independent States İktisat Politikası Araştırmaları Dergisi public expenditures economic growth income inequality fiscal policy panel causality analysis |
| title | Public Expenditures, Economic Growth and Income Inequality: Empirical Evidence from the Commonwealth of Independent States |
| title_full | Public Expenditures, Economic Growth and Income Inequality: Empirical Evidence from the Commonwealth of Independent States |
| title_fullStr | Public Expenditures, Economic Growth and Income Inequality: Empirical Evidence from the Commonwealth of Independent States |
| title_full_unstemmed | Public Expenditures, Economic Growth and Income Inequality: Empirical Evidence from the Commonwealth of Independent States |
| title_short | Public Expenditures, Economic Growth and Income Inequality: Empirical Evidence from the Commonwealth of Independent States |
| title_sort | public expenditures economic growth and income inequality empirical evidence from the commonwealth of independent states |
| topic | public expenditures economic growth income inequality fiscal policy panel causality analysis |
| url | https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/B0B5EBFEC06343D2912B88678D26F111 |
| work_keys_str_mv | AT mursitrecepoglu publicexpenditureseconomicgrowthandincomeinequalityempiricalevidencefromthecommonwealthofindependentstates |