A REVIEW ON THE DYNAMICS OF GROWTH FROM A KEYNESIAN PERSPECTIVE: THE CASE OF TURKEY 1998-2019

Abstract

The aim of this study is to determine the sources of economic growth according to the total expenditures method with the Keynesian perspective. The importance of the study is that it allows us to understand Turkey's consumer spending tendency, the relationship between investments and economic growth, whether public expenditures are the cause or consequence of economic growth, and the impact of foreign trade on economic growth. The main motivation of this research is that the findings to be obtained from historical data can set the light on future macroeconomic policies. The study covers the period 1998-2019. According to the causality research conducted with the Pairwise Granger method; a Two-way relationship between economic growth and consumption expenditures, two-way relationships between economic growth and imports, and a unidirectional causality relationship from economic growth to public expenditures have been determined. According to the findings obtained from the equation estimated by the Least Squares method; It has been determined that the most important contribution to economic growth comes from consumption expenditures. In addition, it has been determined that GDP has a positive relationship with investments, public expenditures and exports, and a negative relationship with imports