The Empirical Analysis of Budget Revenues and Expenditures in Turkey

Sevda Akar

Journal of BRSA Banking and Financial Markets, 2014, vol. 8, issue 1, 141-159

Abstract: This study aims to investigate the relationship between budget revenues and expenditures in Turkey. The annualy data used in the study covers the period from 1950 to 2012. First, the stationarity of the variables is tested with standart unit root tests and unit root tests allowing structural breaks by following Payne et al. (2008) and Paleologou (2013). After that, the analysis continues with Gregory and Hansen (1996)’s cointegration test and Enders and Siklos (2001)’s TAR and MTAR models. The empirical results of the study show that budget deficit is weakly sustainable in investigated period. Furthermore, it is determined that budget revenues and expenditures are significantly related in the long run and convergence process to wards long run equilibrium is symmetric. Empirical results also points bi-directional causality between the variables in the short run

Keywords: Budget Deficit; Sustainability; Cointegration; TAR; MTAR (search for similar items in EconPapers)
JEL-codes: C32 E62 H60 (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:bdd:journl:v:8:y:2014:i:1:p:141-159

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