Evaluation of Development Plans within the Framework of New Public Management: ARDL Bound Testing Approach

Article Information
Journal: Business and Economics Research Journal
Title of Article: Evaluation of Development Plans within the Framework of New Public Management: ARDL Bound Testing Approach
Author(s): Eren Caskurlua, Erman Eroglu
Volume: 11
Number: 3
Year: 2020
Page: 647-669
ISSN: 2619-9491
DOI Number: 10.20409/berj.2020.275
Traditional public administration was mainly applied in the period when the welfare state was dominant. The new public management approach is a conception systematic shaped within the framework of neoliberal thought and limiting the state. Policies were implemented to reduce public expenditures and public employment, with privatization coming into prominence, and to increase efficiency in deregulation and provision of public services. In this study, the basic policies in the Tenth and Eleventh Development Plans are evaluated based on the new public management approach. The points that draw attention to public administration in the plans can be listed as the importance given to privatization, accountability, and financial localization. It can be pointed out that the goals and the policies envisaged in public management in both plans emphasize the new public management approach. In the empirical analysis part of the study, the effect of the added value created in the state-owned enterprises on the growth rates of the agriculture and industry sectors is investigated. In this context, cointegration with ARDL bound test and causality with Toda – Yamomoto between these variables in the period of 1985-2017 were examined. According to the results, the added value of state-owned enterprises increased the growth rate of the agricultural and industrial sectors and the presence of a long-term positive relationship between the variables was determined.

Keywords: Traditional Public Administration, New Public Management, Development Plans, Cointegration Analysis, Causality Test

JEL Classification: H19, H89, O20

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