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The Effect of Military Spending on Economic Growth and Unemployment in Mediterranean Countries

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  • Suna Korkmaz

    (Band rma Faculty of Economics and Administrative Sciences Department of Economics, Balikesir University, 10200 Band rma, Turkey.)

Abstract

One of the necessities of public life and one of the basic elements of the state aiming to fulfill the demands and requirements of individuals which form the community is sovereignty. Sovereignty is separated into two as internal and external. This means, state should provide internal security and peace and also should be able to protect itself against the external threats. In order for a state to achieve these, it has to fulfill the defense services. Due to the unease in Arab regions after Arab spring and as Mediterranean region has strategic importance, 10 countries in Mediterranean region were selected and analysis with panel data was performed for years 2005-2012, in order to examine the effect of military spending of these countries on economic growth and unemployment.

Suggested Citation

  • 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.
    • Handle: RePEc:eco:journ1:2015-01-22
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    References listed on IDEAS

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    2. Abdul Rehman & Hengyun Ma & Rafael Alvarado & Fayyaz Ahmad, 2023. "The nexus of military, final consumption expenditures, total reserves, and economic development of Pakistan," Economic Change and Restructuring, Springer, vol. 56(3), pages 1753-1776, June.
    3. Natalia Utrero-González & Jana Hromcová & Francisco J. Callado-Muñoz, 2019. "Defence Spending, Institutional Environment and Economic Growth: Case of NATO," Defence and Peace Economics, Taylor & Francis Journals, vol. 30(5), pages 525-548, July.
    4. Sepehrdoust, Hamid & Zamani Shabkhaneh, Saber, 2018. "How knowledge base factors change natural resource curse to economic growth?," Technology in Society, Elsevier, vol. 54(C), pages 149-154.
    5. Njamenkengdo, Arsene Aurelien & Kouladoum, Jean-Claude, 2018. "Military Expenses: A Brake on Economic Growth in Chad," International Journal of Development and Conflict, Gokhale Institute of Politics and Economics, vol. 8(1), pages 14-26.
    6. Aurelien, Njamen Kengdo Arsene & Nchofoung, Tii Njivukuh & Marcel, Takoulac Kamta & Jean-Claude, Kouladoum, 2019. "Non-linear effect of military spending on economic growth in Africa: A comparative study between stable and unstable countries," International Journal of Development and Conflict, Gokhale Institute of Politics and Economics, vol. 9(2), pages 195-215.
    7. Serif Canbay & Mustafa Kırca & Erkan Oflaz, 2021. "Relationships Between Defence Expenditures and Economic Growth in G7 Countries Panel Bootstrap Causality Analysis," Bingol University Journal of Economics and Administrative Sciences, Bingol University, Faculty of Economics and Administrative Sciences, vol. 5(1), pages 119-140, August.
    8. Michail Ploumis, 2017. "Hellenic Defence Industrial Base in the Era of Economic Crisis," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 15(2), pages 103-125.
    9. Oana Ramona GLONT, 2018. "The Effect Of Defence Spending On Economic Development In Central Europe," SEA - Practical Application of Science, Romanian Foundation for Business Intelligence, Editorial Department, issue 16, pages 97-106, May.
    10. Oana Ramona Lobont & Oana Ramona Glont & Leonardo Badea & Sorana Vatavu, 2019. "Correlation of military expenditures and economic growth: lessons for Romania," Quality & Quantity: International Journal of Methodology, Springer, vol. 53(6), pages 2957-2968, November.
    11. Vlad Dumitrache & Florin Eduard Grosaru & Maria Constantinescu & Monica Szeles, 2020. "Impact of Defense Expenditures on Economic Growth," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 404-415.

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    More about this item

    Keywords

    military spending; economic growth; unemployment; panel data analysis;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • F5 - International Economics - - International Relations, National Security, and International Political Economy
    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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