Skip to main content

Advertisement

SpringerLink
Log in

New insights into the growth-maximizing size of government: evidence and implications for Turkey

  • Published:
Economic Change and Restructuring Aims and scope Submit manuscript

Abstract

This paper provides new insights into the growth-maximizing size of government in Turkey. Unlike previous studies that traditionally use the share of government spending in GDP as a proxy variable of government size, in this paper we consider a fairly large number of proxy variables ranging from the share of tax revenues in GDP to the share of public investment in total investment. After reviewing the potential non-linear relationship between government size and growth, we estimate various thresholds for government size that maximize growth. To this end, we use the threshold autoregressive model proposed by Hansen (1996: 413-430; 2000: 575-603)) and apply it to Turkey’s annual time-series data for the period from 1974 to 2019. Overall, we arrive at the following main result: Government size is non-linearly related to growth, confirming the existence of a growth-maximizing threshold for any measure of government size, beyond which growth tends to slow down as government size continues to increase. More precisely, the results show that the estimated thresholds for government size lie within the range of 4.28–15.19%, depending on the definition or proxy variable representing government size.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1

Source: Authors’ figure

Similar content being viewed by others

Notes

  1. For example, government consumption expenditure is a widely used measure of government size in empirical studies. As Christie (2014) argues, this measure does not take into account public capital formation and therefore cannot fully capture the productivity-enhancing effects of services provided by the government.

  2. In addition, see Table 7 in the Appendix for various proxy variables used for government size in empirical studies on the relationship between government size and growth.

  3. The BARS curve stands for the initial letters of the last names of Robert J. Barro, Richard K. Armey, Richard W. Rahn, and Gerald W. Scully and its horizontal axis denotes the ratio of government spending to GDP as a proxy variable of the size of government, while the vertical axis stands for the growth rate of real GDP per capita. The BARS curve has important implications for diagnosing the relative share of the public versus the private sector in an economy and government policy in that direction by estimating the optimal government size that maximizes growth.

  4. These are generally considered to be the core areas of a government.

  5. The neoclassical growth model is also called the “exogenous growth model” in the macroeconomic literature. Since it was developed primarily by Solow (1956), it also named just as the “Solow growth model”.

  6. It should be noted here, however, that Scully (1991), in a wide-ranging report by the National Center for Policy Analysis (NCPA Report No: 159), examined the relationship between tax rates and growth and hence the growth-maximizing tax rate, in 103 countries between 1960 and 1980. The author documented that the growth rate is maximized when the size of government averages 19.3%. The author further argued that the specific growth-maximizing tax rates are 11.9% for income tax, 4.6% for sales tax and 9.4% for trade taxes. In contrast, Scully (1991) is a study conducted independently of Barro’s (1990) model to examine the relationship between the two variables.

  7. The government expenditure data we used correspond to the functional classification of government expenditure. This is because the functional classification of the central government budget allows us not only to analyze the effects of total government expenditure on growth but also to evaluate them according to their detailed functions.

  8. The definition of the variables and the data sources can be found in Table 8.

  9. Table 9 provides a detailed justification of the variables that we used in our estimation model.

  10. See the 2021 Government Accounts Report released by the Turkish Statistical Institute (TURKSTAT), p.3. https://data.tuik.gov.tr/Bulten/Index?p=Government-Accounts-2021-45522 (access: 20 December 2022).

  11. For the quadratic fit scatterplots of government size and real GDP per capita growth rate, see Figure 1.

  12. See Feder (1983) and Ram (1986) for more details on derivation and interpretation of models and parameters.

  13. It is generally assumed that government services proportionally affect the efficiency units of capital and labor either positively or negatively (see Engen and Skinner 1992; Lin 1994). By providing goods and services, the government imparts its indirect or “spillover” effects to private factors of production (see Ram 1986; Barro 1991).

  14. Ram (1986) uses government expenditure as a measure of the size of government. In this study, however, we consider taxes as a measure of government size in addition to government expenditure. We also extend Ram’s (1986) model to include other important control variables that have the potential to explain long-run growth. For more details in this regard, see Sect. 4.1.

  15. For more details, see Chen and Lee (2005).

References

  • Abiad A, Furceri D, Topalova P (2016) The macroeconomic effects of public investment: evidence from advanced economies. J Macroecon 50:224–240

    Article  Google Scholar 

  • Abu-Bader S, Abu-Qarn AS (2003) Government expenditures, military spending and economic growth: causality evidence from Egypt, Israel, and Syria. J Policy Model 25(6–7):567–583

    Article  Google Scholar 

  • Afonso A, Furceri D (2010) Government size, composition, volatility and economic growth. Eur J Polit Econ 26(4):517–532

    Article  Google Scholar 

  • Afonso A, Jalles JT (2016) Economic performance, government size, and institutional quality. Empirica 43(1):83–109

    Article  Google Scholar 

  • Afonso A, Schuknecht L, Tanzi V (2005) Public sector efficiency: an international comparison. Public Choice 123(3):321–347

    Article  Google Scholar 

  • Afonso A, Şen H, Kaya A (2021) Government size, unemployment, and inflation nexus in eight large emerging economies. Hacienda Pública Española/rev Public Econ 236(1):133–170

    Google Scholar 

  • Agell J, Ohlsson H, Thoursie PS (2006) Growth effects of government expenditure and taxation in rich countries: a comment. Eur Econ Rev 50(1):211–218

    Article  Google Scholar 

  • Akaike H (1974) A new look at the statistical model identification. IEEE Trans Autom Control 19:716–723

    Article  Google Scholar 

  • Alfaro L, Chanda A, Kalemli-Ozcan S, Sayek S (2004) FDI and economic growth: the role of local financial markets. J Int Econ 64(1):89–112

    Article  Google Scholar 

  • Aly H, Strazicich M (2000) Is government size optimal in the gulf countries of the middle east? an empirical investigation. Int Rev Appl Econ 14(4):475–483

    Article  Google Scholar 

  • Angkinand AP, Willett TD (2008) Political influences on the costs of banking crises in emerging market economies: testing the U-shaped veto player hypothesis. Macroecon Finane Emerg Market Econ 1(2):279–297

    Google Scholar 

  • Armey RK (1995) The freedom revolution. Regnery Publishing, Washington

    Google Scholar 

  • Aschauer DA (1989) Does public capital crowd out private capital? J Monet Econ 24(2):171–188

    Article  Google Scholar 

  • Asimakopoulos S, Karavias Y (2016) The impact of government size on economic growth: a threshold analysis. Econ Lett 139:65–68

    Article  Google Scholar 

  • Balasubramanyam VN, Salisu M, Sapsford D (1996) Foreign direct investment and growth in EP and IS countries. Econ J 106(434):92–105

    Article  Google Scholar 

  • Barro RJ (1990) Government spending in a simple model of endogeneous growth. J Polit Econ 98(S5):S103–S125

    Article  Google Scholar 

  • Barro RJ (1991) Economic growth in a cross-section of countries. Q J Econ 106(2):407–443

    Article  Google Scholar 

  • Barro RJ (1996) Determinants of economic growth: a cross-country empirical study. NBER Working Paper 5698, Massachusetts Avenue Cambridge

  • Barro RJ (2003) Determinants of economic growth in a panel of countries. Ann Econ Financ 4(1):231–274

    Google Scholar 

  • Bergh A, Henrekson M (2011) Government size and growth: a survey and interpretation of the evidence. J Econ Surv 25(5):872–897

    Article  Google Scholar 

  • Bergh A, Karlsson M (2010) Government size and growth: accounting for economic freedom and globalization. Public Choice 142(1–2):195–213

    Article  Google Scholar 

  • Berry WD, Lowery D (1984) The measurement of government size: implications for the study of government growth. J Polit 46(4):1193–1206

    Article  Google Scholar 

  • Boyd JH, De Nicolò G (2005) The theory of bank risk taking and competition revisited. J Financ 60(3):1329–1343

    Article  Google Scholar 

  • Brown CV, Jackson PM (1987) Public sector economics, 3rd edn. Basil Blackwell Ltd., Oxford

    Google Scholar 

  • Bulutay T (1995) Employment, unemployment, and wages in Turkey. International Labour Office State Institute of Statistics, Ankara

    Google Scholar 

  • Chang R, Kaltani L, Loayza NV (2009) Openness can be good for growth: the role of policy complementarities. J Dev Econ 90(1):33–49

    Article  Google Scholar 

  • Chao JC, Grubel H (1998) Optimal levels of spending and taxation in Canada. In: Grubel H (ed) How to use the fiscal surplus. The Fraser Institute, Vancouver

    Google Scholar 

  • Chen S, Lee C (2005) Government size and economic growth in Taiwan: a threshold regression approach. J Policy Model 27(9):1051–1066

    Article  Google Scholar 

  • Chiou-Wei SZ, Zhu Z, Kuo YH (2010) Government size and economic growth: an application of the smooth transition regression model. Appl Econ Lett 17(14):1405–1415

    Article  Google Scholar 

  • Christie T (2014) The effect of government spending on economic growth: testing the non-linear hypothesis. Bull Econ Res 66(2):183–204

    Article  Google Scholar 

  • Churchill SA, Ugur M, Yew SL (2017) Does government size affect per-capita income growth? a hierarchical meta-regression analysis. Econ Recor 93(300):142–171

    Article  Google Scholar 

  • Dar AA, AmirKhalkhali S (2002) Government size, factor accumulation, and economic growth: evidence from OECD countries. J Policy Model 24(7–8):679–692

    Article  Google Scholar 

  • Davies A (2009) Human development and the optimal size of government. J Socio-Econ 38(2):326–330

    Article  Google Scholar 

  • De Gregorio J (1992) The effects of inflation on economic growth: lessons from Latin America. Eur Econ Rev 36(2–3):417–425

    Article  Google Scholar 

  • De Mendonça HF, Cacicedo T (2015) Size of government and economic growth in the largest Latin American country. Appl Econ Lett 22(11):904–910

    Article  Google Scholar 

  • Di Matteo L (2013) Measuring government in the twenty-first century. Fraser Institute, Canada

    Google Scholar 

  • Di Matteo L, Barbiero T (2018) Economic growth and the public sector: a comparison of Canada and Italy, 1870–2013. Rev Econ Anal 10(3):221–243

    Article  Google Scholar 

  • Di Bella G, Dynnikova O, Slavov S (2019) The Russian State’s size and its footprint: have they increased? International Monetary Fund, Bretton Woods

    Google Scholar 

  • DiPeitro WR, Anoruo E (2012) Government size, public debt and real economic growth: a panel analysis. J Econ Stud 39(4):410–419

    Article  Google Scholar 

  • Domazlicky BR (1996) Government size and regional economic growth: another look. Rev Reg Stud 26(1):89–97

    Google Scholar 

  • Durden G, Elledge B (1993) The effect of government size on economic growth: evidence from gross state product data. Rev Reg Stud 23(2):183–190

    Google Scholar 

  • Duval R, Eris M and Furceri D (2010) Labour force participation hysteresis in industrial countries: evidence and causes. Working Paper, OECD Economics Department

  • Easterly W, Rebelo S (1993) Fiscal policy and economic growth: an empirical investigation. J Monet Econ 32(3):417–458

    Article  Google Scholar 

  • El Husseiny IA (2019) The optimal size of government in Egypt: an empirical investigation. J North Afr Stud 24(2):271–299

    Article  Google Scholar 

  • Engen E and Skinner JS (1992) Fiscal policy and economic growth. NBER Working Pape No. 4223

  • Facchini F, Melki M (2013) Efficient government size: France in the twentieth century. Eur J Polit Econ 31:1–14

    Article  Google Scholar 

  • Faria JR, Carneiro FG (2001) Does high inflation affect growth in the long and short-run? J Appl Econ 4(1):89–105

    Article  Google Scholar 

  • Feder G (1983) On exports and economic growth. J Dev Econ 12(1–2):59–73

    Article  Google Scholar 

  • Feldmann H (2009) Government size and unemployment: evidence from developing countries. J Develop Areas 43(1):315–330

    Article  Google Scholar 

  • Feldmann H (2010) Government size and unemployment in developing countries. Appl Econ Lett 17(3):289–292

    Article  Google Scholar 

  • Ferris JS (2014) Government size, government debt and economic performance with particular application to New Zealand. Econ Recor 90(290):365–381

    Article  Google Scholar 

  • Fischer S (1993) The role of macroeconomic factors in growth. J Monet Econ 32(3):485–512

    Article  Google Scholar 

  • Fölster S, Henrekson M (1999) Growth and the public sector: a critique of the critics. Eur J Polit Econ 15(1999):337–358

    Article  Google Scholar 

  • Fölster S, Henrekson M (2001) Growth effects of government expenditure and taxation in rich countries. Eur Econ Rev 45(8):1501–1520

    Article  Google Scholar 

  • Forte F, Magazzino C (2011) Optimal size government and economic growth in EU countries. Econ Politica 28(3):295–322

    Google Scholar 

  • Forte F, Magazzino C (2016) Government size and economic growth in Italy: a time-series analysis. Eur Sci J 12(7):149–169

    Google Scholar 

  • Forte F, Magazzino C (2018) Wagner’s Law, government size and economic growth: an empirical test and theoretical explanations for Italy 1861–2008. In: Backhaus J, Chaloupek G, von Frambach HG, Schmoller and A Wagner, (eds) The European Heritage in Economics and the Social Sciences, vol 21. Springer, Cham

    Google Scholar 

  • Funke M, Gronwald M (2009) A Convex hull approach to counterfactual analysis of trade openness and growth. CESifo, Munich

    Book  Google Scholar 

  • Ghali KH (1999) Government size and economic growth: evidence from a multivariate cointegration analysis. Appl Econ 31(8):975–987

    Article  Google Scholar 

  • Ghose A, Das S (2013) Government size and economic growth in emerging market economies: a panel co-integration approach. Macroecon Finance Emerg Market Econ 6(1):14–38

    Google Scholar 

  • Gillman M, Harris MN and Mátys L (2001) Inflation and growth: some theory and evidence. Central European University Department of Economics Working Paper WP1/2001

  • Gillman M, Harris MN (2010) The effect of inflation on growth: evidence from a panel of transition countries. Econ Transit 18(4):697–714

    Article  Google Scholar 

  • Grossman PJ (1987) The optimal size of government. Public Choice 53:131–147

    Article  Google Scholar 

  • Grossman PJ (1990) Government and growth: cross-sectional evidence. Public Choice 65(3):217–227

    Article  Google Scholar 

  • Gupta KLV (1988) Macroeconomic determinants of growth: some implications of disaggregation. Appl Econ 20(6):843–852

    Article  Google Scholar 

  • Gupta S, Leruth L, De Mello L, Chakravarti S (2003) Transition economies: how appropriate is the size and scope of government? Comp Econ Stud 45:554–576

    Article  Google Scholar 

  • Guseh JS (1997) Government size and economic growth in developing countries: a political-economy framework. J Macroecon 19(1):175–192

    Article  Google Scholar 

  • Gwartney J, Lawson R, Holcombe R (1998) The size and functions of government and economic growth. Joint Economic Committee, Washington

    Google Scholar 

  • Hajamini M, Falahi MA (2018) Economic growth and government size in developed European countries: a panel threshold approach. Econ Anal Policy 58:1–13

    Article  Google Scholar 

  • Hall RE, Jones CI (1999) Why do some countries produce so much more output per worker than others? Q J Econ 114(1):83–116

    Article  Google Scholar 

  • Hansen BE (1996) Inference when a nuisance parameter is not identified under the null hypothesis. Econometrica 64(2):413–430

    Article  Google Scholar 

  • Hansen BE (2000) Sample splitting and threshold estimation. Econometrica 68(3):575–603

    Article  Google Scholar 

  • Harb N, Hall SG (2017) Does government size matter for economic growth? a non-linear analysis using state space model. Econ Res Forum Public 21:37

    Google Scholar 

  • Herath S (2010) The size of the government and economic growth: an empirical study of Sri Lanka, SRE Discussion Papers, 2010/05. In: Vienna University of Economics and Business, Institute for the Environment and Regional Development, Vienna

  • Herath S (2012) Size of government and economic growth: a nonlinear analysis. Econ Ann LVII(194):7–30

    Article  Google Scholar 

  • Hsieh E, Lai K (1994) Government spending and economic growth: the G-7 experience. Appl Econ 26(5):535–542

    Article  Google Scholar 

  • Hutchison MM (2003) A cure worse than the disease? Currency crises and the output costs of IMF-supported stabilization programs, NBER Chapters. In: Managing currency crises in emerging markets. National Bureau of Economic Research, Inc pp 321-359

  • Hutchison MM, Noy I (2005) How bad are twins? Output costs of currency and banking crises. J Money Credit Bank 37(4):725–752

    Article  Google Scholar 

  • Karras G (1996) The optimal government size: further international evidence on the productivity of government services. Econ Inq 34(2):193–203

    Article  Google Scholar 

  • Karras G (1997) On the optimal government size in Europe: theory and empirical evidence. Manch Sch 65(3):280–294

    Article  Google Scholar 

  • Kim DH (2011) Trade, growth and income. J Int Trade Econ Dev 20(5):677–709

    Article  Google Scholar 

  • Kim DH, Wu YC, Lin SC (2018) Heterogeneity in the effects of government size and governance on economic growth. Econ Model 68:205–216

    Article  Google Scholar 

  • Kneller R, Bleaney MF, Gemmell N (1999) Fiscal policy and growth: evidence from OECD countries. J Public Econ 74(2):171–190

    Article  Google Scholar 

  • Kormendi RC, Meguire PG (1985) Macroeconomic determinants of growth: cross-country evidence. J Monet Econ 16(2):141–163

    Article  Google Scholar 

  • Krugman P (1990) The age of diminished expectations. MIT Press, Cambridge

    Google Scholar 

  • Landau D (1983) Government expenditure and economic growth: a cross-country study. South Econ J 49(3):783–792

    Article  Google Scholar 

  • Landau D (1986) Government and economic growth in the less developed countries: an empirical study for 1960–1980. Econ Dev Cult Change 35(1):35–75

    Article  Google Scholar 

  • Lee SC, Wu SF, Lee CT (2017) Government size and stochastic growth. Aust Econ Paper 56(2):219–227

    Article  Google Scholar 

  • Lin SAY (1994) Government spending and economic growth. Appl Econ 26(1):83–94

    Article  Google Scholar 

  • Lucas RE Jr (1988) On the mechanics of economic development. J Monet Econ 22:3–42

    Article  Google Scholar 

  • MacKinnon JG (1996) Numerical distribution functions for unit root and cointegration tests. J Appl Economet 11(6):601–618

    Article  Google Scholar 

  • Makin A, Pearce J, Ratnasiri S (2019) The optimal size of government in Australia. Econ Anal Policy 62:27–36

    Article  Google Scholar 

  • Mallik G, Chowdhury A (2001) Inflation and economic growth: evidence from four Asian countries. Asia-Pac Develop J 8(1):123–135

    Google Scholar 

  • Mavrov H (2007) The size of government expenditure and the rate of economic growth in Bulgaria. Econ Alternat 1:52–63

    Google Scholar 

  • Mittnik S, Neumann T (2003) Time-series evidence on the nonlinearity hypothesis for public spending. Econ Inq 41(4):565–573

    Article  Google Scholar 

  • Newey WK, West KD (1994) Automatic lag selection in covariance matrix estimation. Rev Econ Stud 61(4):631–653

    Article  Google Scholar 

  • Nguyet TB, Phung DN (2018) Government size and economic growth in Asia-evidence from China and Japan. Asian Econ Financ Rev 8(1):71–89

    Article  Google Scholar 

  • Nouira R, Kouni M (2021) Optimal government size and economic growth in developing and MENA countries: a dynamic panel threshold analysis. Middle East Develop J 13(1):59–77

    Article  Google Scholar 

  • Olowofeso EO, Adeleke AO, Udoji AO (2015) Impact of private sector credit on economic growth in Nigeria. CBN J Appl Statist 6(2):81–101

    Google Scholar 

  • Patrick HT (1966) Financial development and economic growth in underdeveloped countries. Econ Dev Cult Change 14(2):174–189

    Article  Google Scholar 

  • Pevcin P (2004) Economic output and the optimal size of government. Econ Bus Rev 6(3):213–227

    Google Scholar 

  • Pillay P (2011) Higher education and economic development: literature review. Centre for Higher Education Transformation (CHET), Cape Town

    Google Scholar 

  • Pushak T, Tiongson ER, Varoudakis A (2007) Public finance, governance, and growth in transition economies: empirical evidence from 1992–2004, The World Bank, Policy Research Working Paper Series, No: 4255, p 31

  • Rahn R and Fox H (1996) What is the optimum size of government? In: Vernon K (ed) Krieble foundation

  • Ram R (1986) Government size and economic growth: a new framework and some evidence from cross-section and time-series data. Am Econ Rev 76(1):191–203

    Google Scholar 

  • Romer PM (1986) Increasing returns and long-run growth. J Polit Econ 94(5):1002–1037

    Article  Google Scholar 

  • Romer PM (1990) Endogenous technological change. J Polit Econ 98(5):S71–S102

    Article  Google Scholar 

  • Romero-Ávila D, Strauch R (2008) Public finances and long-term growth in Europe: evidence from a panel data analysis. Eur J Polit Econ 24(1):172–191

    Article  Google Scholar 

  • Sala-i-Martin X (2002) Sources of growth. In: Khan MS, Nsouli SM, Wong CH (eds) Macroeconomic management: programs and policies. IMF Institute, Washington

    Google Scholar 

  • Scully GW (1991) Tax rates, tax revenues and economic growth. National Center for Policy Analysis, Dallas

    Google Scholar 

  • Scully GW (1995) The growth tax in the United States. Public Choice 85:71–80

    Article  Google Scholar 

  • Scully GW (1994) What is the optimal size of government in the US? National Center for Policy Analysis Policy Report, No: 188, p 17

  • Scully GW (1998) Measuring the burden of high taxes. National Centre for Policy Analysis-Policy Report, Mimeo

    Google Scholar 

  • Scully GW (2003) Optimal taxation, economic growth, and income inequality. Public Choice 115(3/4):299–312

    Article  Google Scholar 

  • Sidrauski M (1967) Inflation and economic growth. J Politic Econ 75(6):796–810

    Article  Google Scholar 

  • Slemrod J (1995) What do cross-country studies teach about government involvement, prosperity, and economic growth? Brook Pap Econ Act 2:373–431

    Article  Google Scholar 

  • Solow RM (1956) A contribution to the theory of economic growth. Q J Econ 70(1):65–94

    Article  Google Scholar 

  • Swan TW (1956) Economic growth and capital accumulation. Econ Recor 32(2):334–361

    Article  Google Scholar 

  • Thanh SD (2015) Threshold effect of government size on economic growth: empirical evidence from Japan and China. Soc Sci Res Netw 25:40

    Google Scholar 

  • Thanh SD, Hoai BTM (2015) The threshold of government size and economic growth for ASEAN countries: an analysis of the smooth transition regression model. Southeast Asian J Econ 3(1):103–124

    Google Scholar 

  • Vedder RK, Gallaway LE (1998) Government size and economic growth. Paper prepared for the joint economic committee of the US congress, pp 1–15

  • Yavas A (1998) Does too much government investment retard economic development of a country? J Econ Stud 25(4):296–308

    Article  Google Scholar 

  • Zareen S, Qayyum A (2014) An analysis of optimal government size for growth: a case study of Pakistan. MPRA 58989:12

    Google Scholar 

Download references

Acknowledgements

The authors thank the editor and the anonymous reviewers for their insight, valuable and constructive comments, and suggestions. The responsibility for any errors in the paper rests solely with the authors.

Author information

Authors and Affiliations

  1. Public Finance Department, Faculty of Political Sciences, Ankara University, Ankara, Turkey

    Hüseyin Şen

  2. Public Finance Department, Faculty of Economics and Administrative Sciences, İzmir Kâtip Çelebi University, İzmir, Turkey

    Ayşe Kaya

  3. Public Finance Department, Faculty of Economics and Administrative Sciences, Kırıkkale University, Kırıkkale, Turkey

    Ayşegül Durucan

Authors
  1. Hüseyin Şen
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Ayşe Kaya
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Ayşegül Durucan
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Ayşe Kaya.

Additional information

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Appendix

Appendix

See Tables

Table 7 A far-reaching review of the empirical literature on the relationship between growth and government size*.
Full size table

7,

Table 8 Definition of the variables and data sources.
Full size table

8 and

Table 9 Justification of the variables in detail.
Full size table

9.

Rights and permissions

Springer Nature or its licensor (e.g. a society or other partner) holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law.

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Şen, H., Kaya, A. & Durucan, A. New insights into the growth-maximizing size of government: evidence and implications for Turkey. Econ Change Restruct 56, 2243–2296 (2023). https://doi.org/10.1007/s10644-023-09510-y

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10644-023-09510-y

Keywords

JEL Classification

Search

Navigation