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Military expenditure and employment in Turkey

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  • Julide Yildirim
  • Selami Sezgin

Abstract

Even though the military expenditure - economic growth relationship has been intensively investigated in the defence economics literature, few studies have been devoted to investigate the nature of military expenditure related employment in armed forces, civil service and in the industries that supply defence material. In the literature, there is no general agreement concerning the effects of military expenditure on employment. Military spending would increase employment, as vast numbers of workers are employed either directly by military-related operations or in a variety of service or supporting roles, or spending on the armed forces may generate increased demand in the economy. However, military expenditure devoted to high-technology labour saving weapon systems can be expected to increase unemployment. The purpose of this study is to assess the importance of military expenditure, among other things, in determining the level of employment in Turkey. Employment equation is specified using a CES production function and modelled employing ARDL technique. Our findings indicate that military expenditure negatively effects employment in Turkey.

Suggested Citation

  • Julide Yildirim & Selami Sezgin, 2003. "Military expenditure and employment in Turkey," Defence and Peace Economics, Taylor & Francis Journals, vol. 14(2), pages 129-139.
    • Handle: RePEc:taf:defpea:v:14:y:2003:i:2:p:129-139
    DOI: 10.1080/10242690302919
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    8. Luqman, Muhammad & Antonakakis, Nikolaos, 2021. "Guns better than butter in Pakistan? The dilemma of military expenditure, human development, and economic growth," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
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    15. Ucal, Meltem & Karabulut, Gokhan & Bilgin, Mehmet Huseyin, 2009. "Military Expenditures and Inequality: Empirical Evidence from Israel," MPRA Paper 48643, University Library of Munich, Germany.
    16. Manamperi, Nimantha, 2016. "Does military expenditure hinder economic growth? Evidence from Greece and Turkey," Journal of Policy Modeling, Elsevier, vol. 38(6), pages 1171-1193.
    17. Ramazan ErdaÄŸ, 2021. "Security Environment and Military Spending of Turkey in the 2000s," Contemporary Review of the Middle East, , vol. 8(1), pages 120-139, March.
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    19. Alper Aslan, 2012. "The Relationship Between Military Spending and Black Market Premium in Greece: An ARDL Approach," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 19(2), pages 155-161, November.
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    21. Suna Korkmaz, 2015. "The Effect of Military Spending on Economic Growth and Unemployment in Mediterranean Countries," International Journal of Economics and Financial Issues, Econjournals, vol. 5(1), pages 273-280.
    22. Prasert Chaitip & Chukiat Chaiboonsri, 2009. "Thailand’s International Tourism Demand: The ARDL Approach to Cointegration," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 9(3), pages 163-184.
    23. Raza, Syed Ali & Shahbaz, Muhammad, 2014. "To Battle Income Inequality, Focus on Military Expenditures: Lesson from Pakistan," MPRA Paper 57773, University Library of Munich, Germany.
    24. Kollias Christos & Tzeremes Panayiotis & Paleologou Suzanna-Maria, 2020. "Defence Spending and Unemployment in the USA: Disaggregated Analysis by Gender and Age Groups," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 26(2), pages 1-13, May.

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