Public Debt and Economic Growth: The Case of Turkey

Abstract

The effects of public debt on economic growth will be analyzed in this paper. The analysis will be covering the thirty five years between 1972 and 2006. Using econometric analysis, the results show that there is a negative influence of budget deficit on economic growth. However this negative influence appears to only affect the economic growth of that certain year. Its effects on the following years were found to be meaningless according to regression results. The analysis has been performed using ordinary least square method. The model's outputs and the parameters' values were found in confidence intervals.