GLOBAL ECONOMIC CRISIS AND EFFECTIVENESS OF PUBLIC SPENDING: THE EU PRACTICE

Authors : Simla GÜZEL, İşın KIRIŞKAN ÇETİN

Pages : 139-158

Doi:10.15637/jlecon.131

View : 16 | Download : 17

Publication Date : 2016-07-29

Article Type : Research Paper

Abstract :The financial crisis of 2008 affected the whole world and it had a negative impact on economies. The effects of the crisis are still experienced in several nations. Especially high budget deficits, public debt and unemployment problems caused a heated debate on public spending that was increased to prevent economic recession in the post-crisis era. This study aims to discuss public expenditure efficiency in the wake of global financial crisis. The study utilized a database including the indicators of; Public Expenditures insert ignore into journalissuearticles values(as a dependent variable);, Gross Domestic Product insert ignore into journalissuearticles values(GDP);, Gross Domestic Product Growth Rate, Unemployment Rate, Public Debt, Fiscal Deficit, Human Development Index insert ignore into journalissuearticles values(HDI);. HDI. We used panel regression analysis for 28 EU countries, and time series analysis for the the top 10 countries in terms of per capita income for the period of 2000-2015. :And this study argues that the high public spending did not affect the indicators used in this study in a positive way. In addition, to this, Norway, Luxemburg and Germany showed best performance in the post-crisis period.
Keywords : Global Crisis, Public Expenditure, EU Countries, Panel Data Analysis, Time Series Analysis