THE IMPACT OF SOCIAL EXPENDITURES ON POVERTY: A STUDY ON TÜRKİYE

Abstract

Nowadays, the problem of poverty is one of the most important
challenges to address, and various strategies are employed to combat it. Social expenditures are among the most significant approaches to reducing poverty and increasing welfare. While some literature discusses the effects of specific types of social
expenditures on poverty, the majority suggests that social expenditures play a vital role in poverty reduction. Although many institutions and organizations contribute to social expenditures, the state is responsible for a significant portion of social spending in Türkiye and the world. Since 2002, public social expenditures have significantly increased during a more stable period in Türkiye compared to previous years. Therefore,
it is essential to investigate the impact of social expenditures on poverty and their effectiveness. This study aims to analyze the effect of public sector social expenditures on poverty in Türkiye from 2006-2021. The study examines the relationship between
social expenditures for social security/social assistance, education, and health services and the poverty rate of 50% and 60% of households using panel data analysis. According to the findings, an inverse relationship was found between education services expenditures, social security/social assistance services expenditures, and both the 50% and 60% poverty rates. However, no statistically significant relationship between health
services and poverty rates was observed.