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Military Expenditures and Economic Growth: Evidence from Turkey

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  • Ahmet Kadiroğlu

Abstract

A recent focus on the socioeconomic impacts of military expenditures has led to a resurgence of interest in research and development activities in this domain. A comprehensive review of extant academic studies reveals a conspicuous absence of research examining the augmented Solow growth model, encompassing capital formation, labour force, military expenditures and economic growth for Turkey. Consequently, this study aims to investigate the impact of capital formation, labour force and military expenditures on economic growth in Turkey from 1991 to 2022. To this end, the study employs the residual augmented least square (RALS) approach. The coefficients for the variables in the long run are analysed with the EKK method and FMOLS, DOLS and CCR estimators. The original contribution of this study lies in its comprehensive examination of the impact of developments in military expenditures on economic growth in Turkey, thereby addressing a significant research gap. The findings indicate that while military expenditures exerted a negative influence on the Turkish economy during the period 1991-2022, the augmentation in capital formation and the labour force exerted a positive influence on the same economy.

Suggested Citation

  • Ahmet Kadiroğlu, 2026. "Military Expenditures and Economic Growth: Evidence from Turkey," Politická ekonomie, Prague University of Economics and Business, vol. 2026(2), pages 254-277.
    • Handle: RePEc:prg:jnlpol:v:2026:y:2026:i:2:id:1502:p:254-277
    DOI: 10.18267/j.polek.1502
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    References listed on IDEAS

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    1. repec:bgu:wpaper:163 is not listed on IDEAS
    2. 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.
    3. Giorgio d’Agostino & John Paul Dunne & Luca Pieroni, 2019. "Military Expenditure, Endogeneity and Economic Growth," Defence and Peace Economics, Taylor & Francis Journals, vol. 30(5), pages 509-524, July.
    4. Abu-Bader, Suleiman & Abu-Qarn, Aamer S., 2003. "Government expenditures, military spending and economic growth: causality evidence from Egypt, Israel, and Syria," Journal of Policy Modeling, Elsevier, vol. 25(6-7), pages 567-583, September.
    5. Sefa Awaworyi Churchill & Siew Ling Yew, 2018. "The effect of military expenditure on growth: an empirical synthesis," Empirical Economics, Springer, vol. 55(3), pages 1357-1387, November.
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    Keywords

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    JEL classification:

    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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