Military expenditure and economic growth in Middle Eastern countries: A dynamic panel data analysis

Date

2005-08-01

Author

Yildirim, J
Sezgin, S
Ocal, N

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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 military expenditure and economic growth is investigated by using cross-section and dynamic panel estimation techniques. Empirical analysis indicates that military expenditure enhances economic growth in the Middle Eastern countries and Turkey as a whole.

Subject Keywords

Economics and Econometrics, Social Sciences (miscellaneous)

URI

https://hdl.handle.net/11511/67126

Journal

DEFENCE AND PEACE ECONOMICS

DOI

https://doi.org/10.1080/10242690500114751

Collections

Department of Economics, Article

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Citation Formats

J. Yildirim, S. Sezgin, and N. Ocal, “Military expenditure and economic growth in Middle Eastern countries: A dynamic panel data analysis,” DEFENCE AND PEACE ECONOMICS, pp. 283–295, 2005, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/67126.