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The effect of social spending on reducing poverty

Ferdi Celikay (Department of Public Finance, Eskisehir Osmangazi University, Eskisehir, Turkey)
Erdal Gumus (Department of Public Finance, Eskisehir Osmangazi University, Eskisehir, Turkey)

International Journal of Social Economics

ISSN: 0306-8293

Article publication date: 8 May 2017

Abstract

Purpose

The purpose of this paper is to provide new empirical evidence on the relationship between social expenditure and poverty in Turkey.

Design/methodology/approach

There are voluminous studies in the literature and many of which contain condradictory results. The authors use panel error correction models and employ Turkish statistical territorial units data (26 regions) covering the period 2004-2011 in the analysis.

Findings

The authors have found that in the short run, there is a negative relationship between social expenditure and poverty, as expected. In the long run, however, there exists a positive relation between them. The authors utilize expenditure on education as one component of social expenditure, and the authors obtain a negative relationship between education expenditure and poverty, both in the short run and in the long run.

Social implications

Poverty is an important social problem that more studies on this subject should examine various aspects and find policies to alleviate it.

Originality/value

Literature on poverty and social spending are growing and their results are contradictory. However, this paper clearly and significantly provides new empirical evidence on the effect of social spending on reducing poverty using Turkish data. This kind of study is hardly found for developing countries like Turkey. It contributes to the literature.

Keywords

Acknowledgements

This study was derived from a Doctoral dissertation titled “The Effect of Social Expenditures on Poverty in Turkey: an Empirical Investigation” at the Institute of Social Sciences of Anadolu University. It was supported by the Scientific Research Projects Commission of Eskisehir Osmangazi University. The project number is 201317046. The views expressed in this paper, however, remain solely those of the authors.

Citation

Celikay, F. and Gumus, E. (2017), "The effect of social spending on reducing poverty", International Journal of Social Economics, Vol. 44 No. 5, pp. 620-632. https://doi.org/10.1108/IJSE-10-2015-0274

Publisher

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Emerald Publishing Limited

Copyright © 2017, Emerald Publishing Limited