THE RELATIONSHIP BETWEEN PUBLİC DOMESTIC DEBT STOCK AND ECONOMIC GROWTH: THE CASE OF 1980-2020 TURKEY

Abstract

Economic growth can be expressed as the net increase in national income. Economic growth is an issue that can be affected by many macroeconomic indicators. One of these is domestic borrowing, and the public sector frequently resorts to domestic borrowing for balancing in terms of space and time. There are basically two views in this field. The common view in the literature on domestic borrowing is that domestic borrowing will not affect economic growth. The other view is that if the public sector resorts to domestic borrowing, crowding out may occur. However, it is very difficult to obtain the rules that are always valid in the economy. For this reason, the effect of domestic borrowing on economic growth in Turkey was analyzed with simple linear regression.