MILITARY EXPENDITURES, ECONOMIC GROWTH AND SPATIAL SPILLOVERS

Date

2016-01-02

Author

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

238
views

0
downloads

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 relationships are examined utilizing different spatial econometric specifications estimated by maximum likelihood. The regressions are compared with each other via likelihood ratio tests, and the spatial Durbin model is found to be the most appropriate one suggesting that the typical least-squares model is misspecified. Empirical evidence indicates that military expenditure has a positive effect on economic growth with a significant spatial dependence for the time period under consideration.

Subject Keywords

Spatial data analysis, Economic growth, Military expenditure

URI

https://hdl.handle.net/11511/57026

Journal

DEFENCE AND PEACE ECONOMICS

DOI

https://doi.org/10.1080/10242694.2014.960246

Collections

Department of Economics, Article

Suggestions

OpenMETU
Core

MILITARY EXPENDITURE AND ECONOMIC GROWTH IN MIDDLE EASTERN COUNTRIES AND TURKEY: A NON-LINEAR PANEL DATA APPROACH KARADAM, DUYGU YOLCU; YILDIRIM ÖCAL, JÜLİDE; Öcal, Nadir (2017-01-01) 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 m...
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...
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 ...
Disaggregate energy consumption, employment and income in Turkey Sarı, Ramazan; Soytaş, Uğur (2004-05-01) The purpose of this paper is to contribute to literature on energy consumption and economic growth relationship by examining how much of the variance in national income growth can be explained by the growth of different sources of energy consumption and employment in Turkey. We use the recently developed generalized forecast error variance decomposition technique of Koop et al. [J. Econom. 74 (1996) 119] and Pesaran and Shin [Econ. Lett. 58 (1998) 17] to determine the information content of the growth rate ...
Endogenous growth testing in the european union and developing countries : taxation, public expenditure and growth Derin, Pınar; Tansel, Aysıt; Department of Economics (2003) In endogenous growth models, in contrast to the neoclassical growth models, government expenditure and taxation have an effect on the long run growth rate. In this thesis I examine whether the empirical evidence support the predictions of endogenous growth models or the neoclassical growth models in relation to fiscal policy. For this purpose I use panel data for fifteen European Union (EU) member and thirty-three developing countries between the years 1970 and 1999. I specifically test the following two pr...

Citation Formats

J. YILDIRIM ÖCAL and N. Öcal, “MILITARY EXPENDITURES, ECONOMIC GROWTH AND SPATIAL SPILLOVERS,” DEFENCE AND PEACE ECONOMICS, pp. 87–104, 2016, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/57026.