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The Nexus of Economic Growth, Military Expenditures and Income Inequality

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  • Ünal Töngür

    (Middle East Technical University, Department of Economics)

  • Adem Yavuz Elveren

    (Fitchburg State University, Department of Economics, History and Political Science)

Abstract

There exists an extensive literature on the effect of military expenditures on economic growth. The literature presents conflicting results and appears lacking the possible effect of inequality. Considering these two issues in the literature, this study follows up the single country case study of Töngür and Elveren (2014)* to provide evidence for the relationship between military expenditures and economic growth for a large group of countries in panel data context for an extended time period by considering income inequality within the augmented Solow growth model.

Suggested Citation

  • Ünal Töngür & Adem Yavuz Elveren, 2015. "The Nexus of Economic Growth, Military Expenditures and Income Inequality," EY International Congress on Economics II (EYC2015), November 5-6, 2015, Ankara, Turkey 208, Ekonomik Yaklasim Association.
    • Handle: RePEc:eyd:cp2015:208
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    References listed on IDEAS

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    Cited by:

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    2. Ahad, Muhammad & Dar, Adeel Ahmad, 2017. "Modeling the Asymmetric Impact of Defense Spending on Economic Growth: An Evidence from Nonlinear ARDL and Multipliers," MPRA Paper 80085, University Library of Munich, Germany, revised 2017.
    3. Elveren Adem Yavuz & Taşıran Ali Cevat, 2021. "Soft Modeling of Military Expenditure, Income Inequality, and Profit Rate, 1988–2008," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 27(3), pages 405-430, September.
    4. Adem Elveren & Valentine M. Moghadam, 2019. "The impact of militarization on gender inequality and female labor force participation," Working Papers 1307, Economic Research Forum, revised 21 Aug 2019.
    5. Kyriakos Emmanouilidis & Christos Karpetis, 2022. "Cross–Country Dependence, Heterogeneity and the Growth Effects of Military Spending," Defence and Peace Economics, Taylor & Francis Journals, vol. 33(7), pages 842-856, October.
    6. çenberci, engin, 2018. "Defense Expenditures and Income Inequality: Evidence from Chosen Euro Using Countries," MPRA Paper 97946, University Library of Munich, Germany.
    7. Adem Yavuz Elveren & Sara Hsu, 2018. "The Effect of Military Expenditure on Profit Rates: Evidence from Major Countries," World Journal of Applied Economics, WERI-World Economic Research Institute, vol. 4(2), pages 75-94, December.

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    More about this item

    Keywords

    Military Expenditures; Economic Growth; Income Inequality; Augmented Solow Growth Model; Panel Data;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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