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An empirical analysis of turkey's defence-growth relationships with a multi-equation model (1956-1994)

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  • Selami Sezgin

Abstract

This study analyses defence-growth relationships in Turkey for the years 1956 and 1994. After a review of the empirical studies on the defence-growth relationship, the relationship is investigated with a Deger type demand and supply side model using 2SLS and 3SLS simultaneous equation method. The study concludes that Turkey's economic growth is stimulated by its defence sector while defence spending has no significant effect on savings and the balance of trade. The study also concludes that the major determinants of Turkish defence spending are its income level, the conflict with PKK (Kurdish Worker's Party) and Greece's defence spending.

Suggested Citation

  • Selami Sezgin, 2001. "An empirical analysis of turkey's defence-growth relationships with a multi-equation model (1956-1994)," Defence and Peace Economics, Taylor & Francis Journals, vol. 12(1), pages 69-86.
  • Handle: RePEc:taf:defpea:v:12:y:2001:i:1:p:69-86
    DOI: 10.1080/10430710108404977
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    Citations

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    Cited by:

    1. Manamperi, Nimantha, 2016. "Does military expenditure hinder economic growth? Evidence from Greece and Turkey," Journal of Policy Modeling, Elsevier, vol. 38(6), pages 1171-1193.
    2. Hou Na & Chen Bo, 2014. "Military Expenditure and Investment in OECD Countries: Revisited," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 20(4), pages 1-10, December.
    3. Shahbaz, Muhammad & Leitão, Nuno Carlos & Uddin, Gazi Salah & Arouri, Mohamed & Teulon, Frédéric, 2013. "Should Portuguese economy invest in defense spending? A revisit," Economic Modelling, Elsevier, vol. 35(C), pages 805-815.
    4. Abdul Jalil & Hafiz Khuram Nadeem Abbasi & Nazia Bibi, 2016. "Military expenditures and economic growth: allowing structural breaks in time series analysis in the case of India and Pakistan," Quality & Quantity: International Journal of Methodology, Springer, vol. 50(4), pages 1487-1505, July.
    5. Adem Y. Elveren, 2012. "Military Spending and Income Inequality:Evidence on Cointegration and Causality for Turkey,1963--2007," Defence and Peace Economics, Taylor & Francis Journals, vol. 23(3), pages 289-301, April.
    6. Andreou Andreas S. & Zombanakis George A. & Migiakis Petros M., 2013. "On Defence Expenditure Reduction: Balancing Between Austerity and Security in Greece," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 19(3), pages 437-458, December.
    7. Hou Na & Chen Bo, 2014. "Military Spending and Economic Growth in An Augmented Solow Model: A Panel Data Investigation for OECD Countries," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 20(3), pages 1-15, August.
    8. Muhammad Nasir & Muhammad Shahbaz, 2015. "War on terror: Do military measures matter? Empirical analysis of post 9/11 period in Pakistan," Quality & Quantity: International Journal of Methodology, Springer, vol. 49(5), pages 1969-1984, September.
    9. Kimbambu Tsasa Vangu, Jean - Paul, 2012. "Analyse de la Relation Guerres Civiles et Croissance Économique
      [Civil Wars and Economic Growth in DRC]
      ," MPRA Paper 42424, University Library of Munich, Germany, revised 05 Feb 2012.
    10. Na Hou & Bo Chen, 2013. "Military Expenditure And Economic Growth In Developing Countries: Evidence From System Gmm Estimates," Defence and Peace Economics, Taylor & Francis Journals, vol. 24(3), pages 183-193, June.
    11. Goodness C. Aye & Mehmet Balcilar & John P. Dunne & Rangan Gupta & Reneé van Eyden, 2014. "Military expenditure, economic growth and structural instability: a case study of South Africa," Defence and Peace Economics, Taylor & Francis Journals, vol. 25(6), pages 619-633, December.
    12. repec:bpj:pepspp:v:23:y:2017:i:3:p:15:n:1 is not listed on IDEAS
    13. Dimitrios PAPARAS & Christian RICHTER & Alexandros PAPARAS, 2016. "Military Spending and Economic Growth in Greece and the Arms Race between Greece and Turkey," Journal of Economics Library, KSP Journals, vol. 3(1), pages 38-56, March.
    14. Khalid ZAMAN & Qazi Shujaat MAHMOOD & Muhammad Mushtaq KHAN & Awais RASHID & Mehboob AHMAD, 2012. "An Empirical Investigation of External Debt - Military Expenditure Nexus in Bangladesh," Economia. Seria Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 15(1), pages 173-188, June.
    15. repec:ipg:wpaper:2014-380 is not listed on IDEAS
    16. Julien Malizard, 2013. "Opportunity Cost Of Defense: An Evaluation In The Case Of France," Defence and Peace Economics, Taylor & Francis Journals, vol. 24(3), pages 247-259, June.
    17. Muhammad Shahbaz & Talat Afza & Muhammad Shahbaz Shabbir, 2013. "Does Defence Spending Impede Economic Growth? Cointegration And Causality Analysis For Pakistan," Defence and Peace Economics, Taylor & Francis Journals, vol. 24(2), pages 105-120, April.
    18. repec:taf:defpea:v:28:y:2017:i:6:p:703-718 is not listed on IDEAS

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