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A System Estimation of the Defense-Growth Relation in Turkey

In: Arming the South

Author

Listed:
  • Jülide Yildirim
  • Selami Sezgin

Abstract

The effects of military expenditure on economic growth have been examined extensively in recent years. However there is no agreement regarding the question of how and in what respects military spending affects economic growth. Feder-Ram or Deger-type multi-equation models have been estimated for a number of country studies and/or groups of countries, using both time-series and cross-sectional data (for extensive literature reviews, see e.g., Dunne, 1996; Ram, 1995; Deger and Sen, 1995; and Sandler and Hartley, 1995). Empirical studies that employ multi-equation models are comprised of three to four equations such as for growth, the savings or investment ratio, the trade balance ratio, and the defense burden. These models are estimated using twostage least squares or three-stage least squares. Even though there are a variety of studies, the results concerning the military expenditureeconomic growth relationship are mixed. Among other things, the evident inconsistency of results may be due to the varying sample periods of the studies, the underlying economic models, and the econometric techniques employed.

Suggested Citation

  • Jülide Yildirim & Selami Sezgin, 2002. "A System Estimation of the Defense-Growth Relation in Turkey," Palgrave Macmillan Books, in: Jurgen Brauer & J. Paul Dunne (ed.), Arming the South, chapter 14, pages 319-335, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-50125-6_15
    DOI: 10.1057/9780230501256_15
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    Citations

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    Cited by:

    1. Halicioglu Ferda, 2004. "Defense Spending and Economic Growth in Turkey: An Empirical Application of New Macroeconomic Theory," Review of Middle East Economics and Finance, De Gruyter, vol. 2(3), pages 34-43, December.
    2. Julide Yildirim & Selami Sezgin, 2003. "Military expenditure and employment in Turkey," Defence and Peace Economics, Taylor & Francis Journals, vol. 14(2), pages 129-139.
    3. Julide Yildirim & Selami Sezgin & Nadir Ocal, 2005. "Military Expenditure And Economic Growth In Middle Eastern Countries: A Dynamic Panel Data Analysis," Defence and Peace Economics, Taylor & Francis Journals, vol. 16(4), pages 283-295.
    4. 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.
    5. 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.
    6. Goodness C. Aye & Mehmet Balcilar & John P. Dunne & Rangan Gupta & Rene� van Eyden, 2014. "Military expenditure, economic growth and structural instability: a case study of South Africa," Defence and Peace Economics, Taylor & Francis Journals, vol. 25(6), pages 619-633, December.
    7. Töngür, Ünal & Elveren, Adem, 2013. "The Impact of Military Spending and Income Inequality on Economic Growth in Turkey, 1963-2008," EY International Congress on Economics I (EYC2013), October 24-25, 2013, Ankara, Turkey 251, Ekonomik Yaklasim Association.
    8. Duygu Yolcu Karadam & Jülide Yildirim & Nadir Öcal, 2017. "Military expenditure and economic growth in Middle Eastern countries and Turkey: a non-linear panel data approach," Defence and Peace Economics, Taylor & Francis Journals, vol. 28(6), pages 719-730, November.

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