WHAT IF TURKEY WAS A MEMBER OF THE FAMILY: THE EFFECTS OF FISCAL POLICIES ON ECONOMIC GROWTH IN THE SELECTED EUROPEAN UNION MEMBER COUNTRIES AND TURKEY

Abstract

This research concentrates on the effects of several fiscal policy instruments on the economic performance. The study contains Turkey in its extended models as well as selected European Union countries which also include so-called PIIGS or debt overhang countries. With regard to the different methods of panel data analysis, empirical results show that taxes, social contributions and public consumption expenditure variables are the key elements which effect economic growth.