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An empirical analysis of turkey's defence-growth relationships with a multi-equation model (1956-1994)

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  • Selami Sezgin

Abstract

This study analyses defence-growth relationships in Turkey for the years 1956 and 1994. After a review of the empirical studies on the defence-growth relationship, the relationship is investigated with a Deger type demand and supply side model using 2SLS and 3SLS simultaneous equation method. The study concludes that Turkey's economic growth is stimulated by its defence sector while defence spending has no significant effect on savings and the balance of trade. The study also concludes that the major determinants of Turkish defence spending are its income level, the conflict with PKK (Kurdish Worker's Party) and Greece's defence spending.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/10430710108404977
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Defence and Peace Economics.

Volume (Year): 12 (2001)
Issue (Month): 1 ()
Pages: 69-86

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Handle: RePEc:taf:defpea:v:12:y:2001:i:1:p:69-86

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Related research

Keywords: Turkey; Defence-Growth relationships; Defence spending;

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Cited by:
  1. Shahbaz, Muhammad & Leitão, Nuno Carlos & Uddin, Gazi Salah & Arouri, Mohamed & Teulon, Frédéric, 2013. "Should Portuguese economy invest in defense spending? A revisit," Economic Modelling, Elsevier, vol. 35(C), pages 805-815.
  2. Muhammad Shahbaz & Talat Afza & Muhammad Shahbaz Shabbir, 2013. "Does Defence Spending Impede Economic Growth? Cointegration And Causality Analysis For Pakistan," Defence and Peace Economics, Taylor & Francis Journals, vol. 24(2), pages 105-120, April.
  3. Khalid ZAMAN & Qazi Shujaat MAHMOOD & Muhammad Mushtaq KHAN & Awais RASHID & Mehboob AHMAD, 2012. "An Empirical Investigation of External Debt - Military Expenditure Nexus in Bangladesh," Economia. Seria Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 15(1), pages 173-188, June.
  4. Muhammad, Nasir & Muhammad, Shahbaz, 2011. "War on Terror: Do Military Measures Matter? Empirical Analysis of Post 9/11 Period in Pakistan," MPRA Paper 35635, University Library of Munich, Germany, revised 29 Dec 2011.
  5. Goodness C. Aye & Mehmet Balcilar & John P. Dunne & Rangan Gupta & Renee van Eyden, 2013. "Military Expenditure, Economic Growth and Structural Instability: A Case Study of South Africa," Working Papers 201344, University of Pretoria, Department of Economics.
  6. Kimbambu Tsasa Vangu, Jean - Paul, 2012. "Analyse de la Relation Guerres Civiles et Croissance Économique
    [Civil Wars and Economic Growth in DRC]
    ," MPRA Paper 42424, University Library of Munich, Germany, revised 05 Feb 2012.
  7. Andreou Andreas S. & Zombanakis George A. & Migiakis Petros M., 2013. "On Defence Expenditure Reduction: Balancing Between Austerity and Security in Greece," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 19(3), pages 437-458, December.

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