Defence Spending and Political Business Cycles in Turkey
The allocation and distribution of government resources is a political process by it is nature. Considerable amount of government spending goes to defence expenditure in Turkey. So, is defence spending affected from political business cycle? To answer this question, this study analyses relationship between political business cycle and total and disaggregate defence spending using regression analyses. This study find that there is no trace of political business cycle over defence spending in Turkey. Furthermore, this study indicate that military coup and increasing of terrorist incidents are cause an increase on defence expenditure.
Volume (Year): 10 (2010)
Issue (Month): 2 ()
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- Paldam, Martin, 1979. " Is There an Election Cycle? A Comparative Study of National Accounts," Scandinavian Journal of Economics, Wiley Blackwell, vol. 81(2), pages 323-42.
- Ellis, Christopher J. & Thoma, Mark A., 1996. "The implications for an open economy of partisan political business cycles: Theory and evidence," European Journal of Political Economy, Elsevier, vol. 11(4), pages 635-651, April.
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