The effect of social expenditures on human development in the European Union

Şaşmaz M. Ü., Cagle M. N., Özen A.

ACTA OECONOMICA, vol.71, no.4, pp.627-643, 2021 (SSCI) identifier

  • Publication Type: Article / Article
  • Volume: 71 Issue: 4
  • Publication Date: 2021
  • Doi Number: 10.1556/032.2021.00043
  • Journal Name: ACTA OECONOMICA
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus, International Bibliography of Social Sciences, Periodicals Index Online, EconLit, Geobase, Index Islamicus
  • Page Numbers: pp.627-643
  • Keywords: social expenditure, human development, human development index, EU, panel data, OECD COUNTRIES, PANEL-DATA, GROWTH, TESTS, CAUSALITY
  • Dokuz Eylül University Affiliated: Yes


Researchers and practitioners alike have long debated the role of high GDP growth strategies and social expenditures (SE) in ensuring a better distribution of income and reduction of poverty. This study is aimed at investigating the effectiveness of social expenditures by offering the use of a robust methodology. Our sample consists of 27 EU countries (further divided into pre-and post-2000 members) between 2005 and 2017. We used panel data to determine whether social expenditures have a positive effect on the World Bank generated Human Development Index (HDI).