THE IMPACT OF GOVERNMENT SPENDINGS ON FOREIGN TRADE: A SAMPLE OF G-7 COUNTRIES
KAMU HARCAMALARININ DIŞ TİCARET ÜZERİNDEKİ ETKİSİ: G-7 ÜLKELERİ ÖRNEĞİ

Author : Oğuzhan TÜRKER
Number of pages : 141-156

Abstract

The rises and the decreases in the government spendings affects many macro economic variables. The main variables that are affected by government spendings are national income, growth and foreign trade. In this study, the impact of government spendings on foreign trade has been analyzed for G-7 countries (Canada, France, Germany, Italy, Japan, United Kingdomand United States). G-7 countries represent nearly 65% of the global capital and 46% of the total gross domestic product. This study has an importance, because these countries constitute most of the world economy. The balanced panel data analyse method have applied by using annual datas for the period of 1992-2017. According to the results of the analyse, there is a negative relationship between government spendings and both exports and imports. An increase (decrease) in the government spendings causes the decrease (increase) in the exports and the imports. The results which was obtained from the paper aren’t consistent with the results of the most of studies in the literature. The studies in the literature, generally, there is a positive relationship between government spendings and both exports and imports.

Keywords

Government spendings, G-7 countries, exports, imports, panel data analysis.

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