The impact of military spending and income inequality on economic growth in Turkey

Date

2016-05-03

Author

Tongur, Unal
Elveren, Adem Yavuz

Metadata

Show full item record

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

Item Usage Stats

249
views

0
downloads

An extensive literature on the effect of military expenditures on economic growth yields conflicting results. However, a crucial issue that has not been investigated in this context is the possible effect of inequality. The impact of military expenditures on economic growth in Turkey has also received substantial attention. Yet, the majority of these studies are not constructed based on a structural model, but rather examine the causality between the variables in question. Considering these two shortcomings in the literature and the lack of consistent results, this study attempts to provide further evidence for the relationship between military expenditures and economic growth for the case of Turkey by considering income inequality within an augmented Solow growth model. Our findings for the 1963-2008 period show that while income inequality has a positive impact on economic growth, military expenditures have no significant effect.

Subject Keywords

Economics and Econometrics, Social Sciences (miscellaneous)

URI

https://hdl.handle.net/11511/64850

Journal

DEFENCE AND PEACE ECONOMICS

DOI

https://doi.org/10.1080/10242694.2014.925324

Collections

Department of Economics, Article

Suggestions

OpenMETU
Core

The impact of value added components of GDP and FDI on economic freedom in Europe SAYARI MARCUM, NAZ; Sarı, Ramazan; Hammoudeh, Shawkat (Elsevier BV, 2018-06-01) This paper investigates the possibility of a long-run relationship between the Economic Freedom Index (EFI), Foreign Direct Investment (FDI) and value added components of GDP in thirty Eastern, Central and Western European countries. The study further examines whether the FDI and sector-specific components of GDP have any significant impact on economic freedom for these countries. We use annual data and employ Pedroni and KAO panel cointegration analyses to assess the long-run relationships. The results ind...
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...
The asymmetric impact of oil prices, interest rates and oil price uncertainty on unemployment in the US Kocaarslan, Baris; SOYTAŞ, MEHMET ALİ; Soytaş, Uğur (Elsevier BV, 2020-02-01) In this study, we investigate the presence of asymmetric interactions between oil prices, oil price uncertainty, interest rates, and unemployment in a cointegration framework. Utilizing the nonlinear auto-regressive distributed lag (NARDL) approach, we show the asymmetric responses of unemployment to changes in oil prices, oil price uncertainty and interest rates in the long-run. More specifically, the results of our analyses suggest that an increase in oil price results in increased unemployment while ther...
ARMS RACE BETWEEN TURKEY AND GREECE: A THRESHOLD COINTEGRATION ANALYSIS Öcal, Nadir; Yildirim, Juelide (Informa UK Limited, 2009-01-01) The ongoing Turkish-Greek antagonism has triggered the interest of defense economists to investigate the various aspects of the arms race between Turkey and Greece. However, empirical studies examining the long-run relationship between the military expenditures of the two countries offer little evidence in favor of such an interaction. This paper attributes the poor results of the previous literature to the adherence to linear cointegration techniques and argues that if the adjustment towards long-run equil...
The causal relationship between energy consumption and economic growth Çevirgen, Banu; Erdil, Erkan; Department of Economics (2008) The causal relationship between energy consumption and economic growth has been a controversial subject of the empirical literature. However, there is no common consensus neither on the existence nor on the direction of the causal relationship between energy consumption and economic growth. The purpose of this study is to investigate the causal relationship between energy consumption and economic growth using a consistent data set. Recently developed Granger causality tests in panel data models are used to ...

Citation Formats

U. Tongur and A. Y. Elveren, “The impact of military spending and income inequality on economic growth in Turkey,” DEFENCE AND PEACE ECONOMICS, pp. 433–452, 2016, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/64850.