MILITARY EXPENDITURE AND ECONOMIC GROWTH IN MIDDLE EASTERN COUNTRIES AND TURKEY: A NON-LINEAR PANEL DATA APPROACH

Date

2017-01-01

Author

KARADAM, DUYGU YOLCU
YILDIRIM ÖCAL, JÜLİDE
Öcal, Nadir

Metadata

Show full item record

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Item Usage Stats

167
views

0
downloads

The economic growth effects of military expenditure have been the subject of a large literature in defence economics. Theories on the economic impacts of military expenditure greatly differ and include arguments that they either enhance economic growth or crowd out productive investments. Empirical literature on defence expenditure and economic growth nexus generally employs linear specifications to investigate the impact of defence expenditures on economic growth. Although it is now well established that many economic variables may have a non-linear data-generating mechanism, it seems that this reality has long been neglected in empirical work on defence-growth nexus. This paper attempts to fill this gap by employing non-linear panel data models to examine the effects of military expenditures on economic growth for Middle Eastern countries and Turkey, for the time period 1988-2012. Results show that the effect of military expenditure on economic growth is nonlinear such that the state of the economy actually determines the effect of the former on the latter. This is important not only in showing asymmetric relationship between these variables but also in revealing the reasons of mixed results of earlier literature

Subject Keywords

Military expenditure, Economic growth, Non-linear panel data models, Middle Eastern countries, Turkey

URI

https://hdl.handle.net/11511/52299

Journal

DEFENCE AND PEACE ECONOMICS

DOI

https://doi.org/10.1080/10242694.2016.1195573

Collections

Department of Economics, Article

Suggestions

OpenMETU
Core

MILITARY EXPENDITURES, ECONOMIC GROWTH AND SPATIAL SPILLOVERS YILDIRIM ÖCAL, JÜLİDE; Öcal, Nadir (2016-01-02) The relationship between economic growth and military expenditure has been the subject of a large literature in defence economics. This study analyses the influence of military expenditures on economic growth in a global perspective for the time period 2000-2010 taking spatial dimension into account. The augmented Solow model is employed to investigate the defence-growth nexus using the cross-sectional data relating to 128 countries. Following a traditional regression analysis, spatial variations in the rel...
Military expenditures and political regimes: Evidence from global data, 1963-2000 Tongur, Unal; Hsu, Sara; Elveren, Adem Yavuz (2015-01-01) This paper examines the determinants of military expenditures with a special focus on political regimes for more than 130 countries for the period of 1963-2000 by employing a dynamic panel data analysis. The paper aims at contributing to the literature by utilizing a recently constructed political regime data set and controlling for income inequality, a key variable that has not received substantial attention in the context of political regimes, economic growth and military expenditures. Covering a large se...
Military expenditure and economic growth in Middle Eastern countries: A dynamic panel data analysis Yildirim, J; Sezgin, S; Ocal, N (Informa UK Limited, 2005-08-01) Defence expenditures have both costs and benefits to the economy. The costs of defence expenditures are mainly emphasized as opportunity costs. On the other hand, defence spending may have growth-promoting potential benefits: a rise in defence spending may result in a higher aggregate demand, production and employment. This paper examines empirically the effects of military expenditures on economic growth for Middle Eastern countries and Turkey, for the time-period 1989-1999. The relationship between milita...
Military Expenditures, Income Inequality, Welfare and Political Regimes: A Dynamic Panel Data Analysis Tongur, Unal; Elveren, Adem Y. (Informa UK Limited; 2015-01-02) The goal of this paper is to investigate the relationship between type of welfare regimes and military expenditures. There is a sizeable empirical literature on the development of the welfare state and on the typology of the welfare regimes. There appear to be, however, no empirical studies that examine welfare regimes with special attention to military spending. This study aims at providing a comprehensive analysis on the topic by considering several different welfare regime typologies. To do so, we use dy...
Financial development, financial openness and growth: an empirical investigation Ünaldı Akgün, Burçin; Özmen, Erdal; Department of Economics (2011) The economic literature posits that a well-functioning economy requires a well-regulated financial system, and a sound financial system is essential to the fundamentals of an economy, however, even the most influential economists disagree sharply about the role of the finance-growth relationship in economic development. One of the most important questions concerning financial openness is whether it spurs long-run economic growth, and if yes, do these benefits outweigh the risks for developing countries. In ...

Citation Formats

D. Y. KARADAM, J. YILDIRIM ÖCAL, and N. Öcal, “MILITARY EXPENDITURE AND ECONOMIC GROWTH IN MIDDLE EASTERN COUNTRIES AND TURKEY: A NON-LINEAR PANEL DATA APPROACH,” DEFENCE AND PEACE ECONOMICS, pp. 719–730, 2017, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/52299.