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In the globalization literature, efficiency and compensation hypotheses are widely discussed and analyzed empirically. In this study, validity of the efficiency and compensation hypotheses for twelve different public expenditures is tested. Analyzes related with five different globalization indexes (general globalization, economic globalization, political globalization, cultural globalization and social globalization index) were performed. The period after the collapse of the Berlin wall when globalization was most intense (the post-1989 period, which is called the hyper-globalization period) was chosen as the period of the study, and the analyzes were carried out using unbalanced panel data set and two-way fixed effect models for the sample of developing countries. In addition, in the models of the study all variables were used in their stationary state. According to the results obtained from the analyzes performed for the five different types of globalization, statistically significant positive coefficients were intensely obtained and therefore, it was observed that the compensation hypothesis was predominantly valid. [ABSTRACT FROM AUTHOR]