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Defence Spending and Political Business Cycles in Turkey

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  • Sennur Sezgin

    ()
    (Pamukkale University Faculty of Economics and Administrative Sciences)

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    Abstract

    The allocation and distribution of government resources is a political process by it is nature. Considerable amount of government spending goes to defence expenditure in Turkey. So, is defence spending affected from political business cycle? To answer this question, this study analyses relationship between political business cycle and total and disaggregate defence spending using regression analyses. This study find that there is no trace of political business cycle over defence spending in Turkey. Furthermore, this study indicate that military coup and increasing of terrorist incidents are cause an increase on defence expenditure.

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    Bibliographic Info

    Article provided by Ege University Faculty of Economics and Administrative Sciences in its journal Ege Academic Review.

    Volume (Year): 10 (2010)
    Issue (Month): 2 ()
    Pages: 487-502

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    Handle: RePEc:ege:journl:v:10:y:2010:i:2:p:487-502

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    Web page: http://iibf.ege.edu.tr/ENG/
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    Related research

    Keywords: Political Business Cycle; Defence Spending; Turkey;

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    1. Vaubel, Roland, 1997. "The bureaucratic and partisan behavior of independent central banks: German and international evidence," European Journal of Political Economy, Elsevier, vol. 13(2), pages 201-224, May.
    2. Ellis, Christopher J. & Thoma, Mark A., 1996. "The implications for an open economy of partisan political business cycles: Theory and evidence," European Journal of Political Economy, Elsevier, vol. 11(4), pages 635-651, April.
    3. Paldam, Martin, 1979. " Is There an Election Cycle? A Comparative Study of National Accounts," Scandinavian Journal of Economics, Wiley Blackwell, vol. 81(2), pages 323-42.
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