Influence Of Public Sector Size On Economic Growth: The Case Of Turkey (1980-2014)

The share of the state's economic system varies from country to country. It can be said that when regulatory role of the state is taken into account, it has great importance in terms of the whole country. The relationship between development level of the country and the share of the public sector seems to be inverse. Everything is expected from the state for the reason that there is not enough power of the private sector in less developed country. Therefore, the share of public sector is greater than the share of the private sector in less developed countries. In developed countries, the share of the private sector is greater than the public sector. State which represent common legitimate sanction power of society, is important in history of economic thought. The regulatory and controlling role and share of the state in the economy and share are one of the most important issues that have discussed for many years. State-economic relations and the weight of the state in the economy is always the most important issues of economic agenda. The share of the state in the economy affects economic growth in an economic system.In this study, the relationship between the size of the public sector and economic growth is being assessed in terms of Turkey's economy. In this context between the years of 1980-2014 time series data will be utilized which pertain to Turkey's economy. After the time series used in according to their stasis unit root tests, the analysis examined cointegration between the series whether Mani (cointegration) will be investigated. The relationship will be determined between the size of the public sector and economic growth depending on the results of the appropriate empirical econometric models.