Effects of Income Distribution and Fiscal Policy on Growth in Turkey: A Kaleckian Analysis

YILMAZ E., BAHÇE S.

REVIEW OF RADICAL POLITICAL ECONOMICS, 2024 (SSCI) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Basım Tarihi: 2024
  • Doi Numarası: 10.1177/04866134241276281
  • Dergi Adı: REVIEW OF RADICAL POLITICAL ECONOMICS
  • Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus, Academic Search Premier, IBZ Online, International Bibliography of Social Sciences, Periodicals Index Online, ABI/INFORM, American History and Life, EconLit, Index Islamicus, Political Science Complete, Public Affairs Index, Sociological abstracts, Worldwide Political Science Abstracts
  • Hacettepe Üniversitesi Adresli: Evet

Özet

This study examines the effects of functional income distribution and fiscal policy on growth in Turkey. A post-Kaleckian open economy model is used to analyze the Turkish economy by integrating fiscal policy tools into the econometric model, such as tax burdens on labor and capital and government expenditure for 1988-2017. The novelty of our study is that it considers the private profit motive and rollback of government activities by including public-private partnership investments in the model. Our findings suggest that government ideologies in providing services through different channels do not cause alteration in the domestic demand regime; it stays wage-led in all scenarios we applied. Yet, the overall regime turns out to be profit-led since net export is sensitive to labor costs.JEL Classification: E12, E62, L33