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https://hdl.handle.net/11499/56814
Title: | What are the main determinants of social expenditure? A panel data approach for EU and OECD countries | Authors: | Karaalp-Orhan, Hacer Simay Evcim, Nurgül Deyneli, Fatih |
Keywords: | Social expenditure EU OECD Turkiye Economic-Growth Latin-America Globalization Representation Participation Politics Impact Index |
Publisher: | Emerald Group Publishing Ltd | Abstract: | PurposeThe aim of this study is to analyze which socioeconomic factors (economic, demographic, and political) most commonly affect the social expenditure of the European Union (EU) and Organization for Economic Co-operation and Development (OECD) countries.Design/methodology/approachA panel data fixed-effects model is employed for 34 OECD and 23 EU countries between 2000 and 2020.FindingsResults indicate that, in all country groups, economic factors have the most significant influence on social expenditures, with income being the primary determinant, particularly in EU countries. The negative impacts of unemployment and inflation underscore the importance of counter-cyclical measures adopted by countries to maintain stability in their social expenditures. The most influential demographic factor is found as the old-age-dependency ratio. While the rule of law affects social expenditure positively, government effectiveness and female labor force participation affect it negatively. The positive effect of Konjunkturforschungsstelle (KOF) indexes shows the globalization effect, which can be attributable to the compensation hypothesis.Practical implicationsGovernments enforce inclusive and sustainable policies to boost economic activities and GDP, thus combating inflation and unemployment and regulating the labor market and socioeconomic problems about aging populations and women's economic participation to control social expenditures. The rule of law and institutional quality will also boost economic growth.Originality/valueThis study focuses on the effects of social expenditures in a broader view within the framework of the three main factors (economic, demographic, political) and attempts to determine the key factors that account for the differences in social expenditure between the OECD and EU countries.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-05-2023-0384 | URI: | https://doi.org/10.1108/IJSE-05-2023-0384 https://hdl.handle.net/11499/56814 |
ISSN: | 0306-8293 1758-6712 |
Appears in Collections: | İktisadi ve İdari Bilimler Fakültesi Koleksiyonu Scopus İndeksli Yayınlar Koleksiyonu / Scopus Indexed Publications Collection WoS İndeksli Yayınlar Koleksiyonu / WoS Indexed Publications Collection |
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