An Empirical Analysis of Relation between Debts Service and Public Revenue and Public Expenditures: The Turkish Case
Ankara Üniversitesi SBF Dergisi, Vol. 60, No. 2, pp. 29-48, 2005
20 Pages Posted: 7 Jul 2009
Date Written: 2005
Abstract
As an alternative to tax, borrowing is more often applied as a fiscal tool to finance public expenditures and take precautions against socio-economics conditions of economy. However, in the case of borrowing it has necessary effects on economy during the period of debt servicing. Since, borrowing is frequently applied tool in Turkey, this study analyzes its effects on public expenditures and revenues. The findings based on the period of 1980-2003 show that there is statistically significant and same way relation between debt servicing and public revenues. Considering public expenditures, it is, however, found statistically insignificant but reverse relation between debt servicing and public expenditures.
Note: Downloadable document is in Turkish.
Keywords: Debt Service, Public Spending, Public Revenue, Borrowing, Turkey
JEL Classification: H63, H74
Suggested Citation: Suggested Citation