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Conflict, Defense Spending and Economic Growth in the Middle East: A Panel Data Analysis

Author

Listed:
  • Serkan Künü

    (Department of Economics, Faculty of Economics and Administrative Sciences, Turkey,)

  • Sertaç Hopoðlu

    (Department of Economics, Faculty of Economics and Administrative Sciences, Iðdýr University, Turkey)

  • Gürkan Bozma

    (Department of Economics, Faculty of Economics and Administrative Sciences, Iðdýr University, Turkey.)

Abstract

The relationship between defense spending and economic growth is an active topic of debate for a long time. Defense spending may have negative consequences on the growth performance of developing countries in such conflict-ridden areas as the Middle East. This study is conducted to investigate the effects of defense spending on economic growth in a panel of twelve Middle Eastern countries over the period 1998-2012. The approach suggested by Swamy and Arora (1972) was employed for the empirical study. Findings of the empirical study suggest that defense spending has a negative effect on economic growth, which aggravates during times of internal and external conflicts

Suggested Citation

  • Serkan Künü & Sertaç Hopoðlu & Gürkan Bozma, 2016. "Conflict, Defense Spending and Economic Growth in the Middle East: A Panel Data Analysis," International Journal of Economics and Financial Issues, Econjournals, vol. 6(1), pages 80-86.
  • Handle: RePEc:eco:journ1:2016-01-11
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Defense Spending; Economic Growth; Conflict; Middle East;

    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • F52 - International Economics - - International Relations, National Security, and International Political Economy - - - National Security; Economic Nationalism
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War

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