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

Yildirim, J
Sezgin, S
Ocal, N
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.


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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: