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The Impacts of Sectoral Demand for Military Expenditure on Peace Dividend: A Case for Turkey and Greece

In: Proceedings of the Conference on Human and Economic Resources

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Author Info

  • Durmuþ Özdemir

    (Istanbul Bilgi University)

  • Ali Bayar

    (Free University of Brussels)

Abstract

This paper examines the effect of sectoral demand for military expenditure on the peace dividend between Greece and Turkey by employing a multi region dynamic CGE model. A general purpose of the study is to examine the prospect for conflict resolution if Turkey become a member state for the EU. This would expected to create a peace between the two countriesin, hence a possible cut back on military expenditure. The model allows to analyse several scenarios; a positive scenario is a certain amount of reduction on Military Expenditure/GDP (ME/GDP) ratios. This may cause a decrease in sectoral demand for military expenditures. This re-allocation scenarios may effect the sectoral distributýon and a higher GDP growth, higher private consumption, lower unemployment, lower interst rates, economic stability and increased FDI for Turkey and improved BoP in both countries in a different level. The economic stability and some spillover effects are some other economic benefits to the EU.

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Bibliographic Info

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This chapter was published in:

  • Oguz Esen & Ayla Ogus (ed.), 2006. "Proceedings of the International Conference on Human and Economic Resources," Proceedings of the IUE-SUNY Cortland Conference in Economics, Izmir University of Economics, number 2006.
    This item is provided by Izmir University of Economics in its series Papers of the Annual IUE-SUNY Cortland Conference in Economics with number 200623.

    Handle: RePEc:izm:prcdng:200623

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    Related research

    Keywords: CGE; dynamic CGE; Greece; Turkey; military expenditure;

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