Dynamic linkages between social expenditures and economic growth : the most important conclusions for Central European countries
Tuncer Govdeli, Esra Karakuş Umar
The role of the state within the neoliberal system is discussed in the approaches developed for social expenditures. Accordingly, the question of whether the state should stand back or provide the support needed by individuals has shaped the literaturę on social expenditures. It is thought that the increase in social expenditures affects public expenditures, and public expenditures may indirectly cause budget deficits. In addition, it is said that there is a decrease in social spending during periods of economic growth. All these dilemmas show that the idea that the country needs both producers and consumers while realizing economic growth has been pushed into the background. Here, the analyses of the relationship between social spending and economic growth are the arguments for the accuracy of this assumption. The aim of this study is to empirically analyze the long-term relationship between the economic growth and social expenditures of eight Central European countries and the causality relationship for 1999 and 2019. In the empirical findings, the cointegration relationship was determined between economic growth and social spending. Based on the findings of the causality analysis, it has been concluded that there is a bidirectional causality relationship between economic growth and social expenditures. Policy proposals are given in the conclusion section of the article.
Alternative title: | Dynamiczne powiązania między wydatkami socjalnymi a wzrostem gospodarczym : najważniejsze wnioski dla krajów Europy Środkowej |
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Year of publication: |
2021
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Authors: | Govdeli, Tuncer ; Umar, Esra Karakuş |
Published in: |
Comparative economic research : Central and Eastern Europe. - Łódź : Wydawnictwo Uniwersytetu Łódzkiego, ISSN 2082-6737, ZDB-ID 2636451-7. - Vol. 24.2021, 4, p. 7-21
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Subject: | social expenditures | economic growth | political economy | Central European countries | panel data | Wirtschaftswachstum | Economic growth | Öffentliche Sozialausgaben | Public social expenditure | Osteuropa | Eastern Europe | Ostmitteleuropa | Central-Eastern Europe |
Saved in:
freely available
Type of publication: | Article |
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Type of publication (narrower categories): | Aufsatz in Zeitschrift ; Article in journal |
Language: | English |
Other identifiers: | 10.18778/1508-2008.24.28 [DOI] hdl:10419/259284 [Handle] |
Classification: | H53 - Government Expenditures and Welfare Programs ; I38 - Government Policy; Provision and Effects of Welfare Programs ; F43 - Economic Growth of Open Economies ; O47 - Measurement of Economic Growth; Aggregate Productivity |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10012886742
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