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The Long-Run Linkages Between Education, Health And Defence Expenditures And Economic Growth: Evidence From Turkey

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  • Sibel Bali Eryigit
  • Kadir Yasin Eryigit
  • Ufuk Selen

Abstract

In this study, we empirically investigate the long-run relationships between education--health expenditures, defence expenditures and economic growth in Turkey by using annual time-series data for the time period 1950--2005. To estimate these relationships, we use the cointegration method, which allows for the existence of structural breaks. The results show that there are two cointegrating vectors in the system with statistically significant structural breaks. According to the identified long-run equations, education and health expenditures affect economic growth positively, while defence expenditures have negative effects. In addition, the results show that there is a budgetary trade-off between education--health and defence expenditures.

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  • Sibel Bali Eryigit & Kadir Yasin Eryigit & Ufuk Selen, 2012. "The Long-Run Linkages Between Education, Health And Defence Expenditures And Economic Growth: Evidence From Turkey," Defence and Peace Economics, Taylor & Francis Journals, vol. 23(6), pages 559-574, December.
    • Handle: RePEc:taf:defpea:v:23:y:2012:i:6:p:559-574
    DOI: 10.1080/10242694.2012.663577
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    References listed on IDEAS

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    1. David E. Bloom & David Canning & Jaypee Sevilla, 2001. "The Effect of Health on Economic Growth: Theory and Evidence," NBER Working Papers 8587, National Bureau of Economic Research, Inc.
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    2. Arshian Sharif & Sahar Afshan, 2018. "Does Military Spending Impede Income Inequality? A Comparative Study of Pakistan and India," Global Business Review, International Management Institute, vol. 19(2), pages 257-279, April.
    3. Marwa Sahnoun, 2018. "Does Health Expenditure Increase Economic Growth: Evidence from Tunisia," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 21(67), pages 126-144, March.
    4. Mohammad Mafizur Rahman & Xuan-Binh (Benjamin) Vu & Son Nghiem, 2022. "Economic Growth in Six ASEAN Countries: Are Energy, Human Capital and Financial Development Playing Major Roles?," Sustainability, MDPI, vol. 14(8), pages 1-17, April.
    5. Wen-Yi Chen & Yai-Wun Liang & Yu-Hui Lin, 2018. "Does Health Spending Crowd out Defense in the United States? Evidence from Wavelet Multiresolution Analysis," Defence and Peace Economics, Taylor & Francis Journals, vol. 29(7), pages 780-793, November.
    6. Goodness C. Aye & Mehmet Balcilar & John P. Dunne & Rangan Gupta & Rene� 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.
    7. Chiung-Ju Huang & Yuan-Hong Ho, 2018. "Does Taiwan's Defense Spending Crowd out Education and Social Welfare Expenditures?," Journal of Economics and Management, College of Business, Feng Chia University, Taiwan, vol. 14(1), pages 67-82, February.
    8. Chiwei Su & Yingying Xu & Hsu Ling Chang & Oana-Ramona Lobont & Zhixin Liu, 2020. "Dynamic Causalities between Defense Expenditure and Economic Growth in China: Evidence from Rolling Granger Causality Test," Defence and Peace Economics, Taylor & Francis Journals, vol. 31(5), pages 565-582, July.
    9. Tsai-Yuan Huang & Po-Chin Wu & Shiao-Yen Liu, 2017. "Defense–Growth Causality: Considerations of Regime-Switching and Time- and Country-Varying Effects," Defence and Peace Economics, Taylor & Francis Journals, vol. 28(5), pages 568-584, September.
    10. Solarin, Sakiru Adebola, 2020. "The effects of shale oil production, capital and labour on economic growth in the United States: A maximum likelihood analysis of the resource curse hypothesis," Resources Policy, Elsevier, vol. 68(C).
    11. Isiaka Akande Raifu & Alarudeen Aminu, 2023. "The effect of military spending on economic growth in MENA: evidence from method of moments quantile regression," Future Business Journal, Springer, vol. 9(1), pages 1-21, December.
    12. Serge Mandiefe Piabuo & Julius Chupezi Tieguhong, 2017. "Health expenditure and economic growth - a review of the literature and an analysis between the economic community for central African states (CEMAC) and selected African countries," Health Economics Review, Springer, vol. 7(1), pages 1-13, December.
    13. Ran Tao & Oana Ramona Glonț & Zheng-Zheng Li & Oana Ramona Lobonț & Adina Alexandra Guzun, 2020. "New Evidence for Romania Regarding Dynamic Causality between Military Expenditure and Sustainable Economic Growth," Sustainability, MDPI, vol. 12(12), pages 1-13, June.
    14. Serdar Kurt, 2015. "Government Health Expenditures and Economic Growth: A Feder Ram Approach for the Case of Turkey," International Journal of Economics and Financial Issues, Econjournals, vol. 5(2), pages 441-447.
    15. Sinan Erdogan & Eyup Serdar Erdogan, 2023. "Analyzing the asymmetric effect of disaggregated health expenditures on economic growth," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(3), pages 2673-2686, June.
    16. Yingying Xu & Hsu Ling Chang & Chi Wei Su & Adelina Dumitrescu, 2018. "Guns for Butter? Empirical Evidence from China," Defence and Peace Economics, Taylor & Francis Journals, vol. 29(7), pages 809-820, November.
    17. Shahbaz, Muhammad & Khraief, Naceur & Kumar Mahalik, Mantu & Khan, Saleheen, 2018. "Military Spending Response to Defense Shocks? International Evidence," MPRA Paper 87362, University Library of Munich, Germany, revised 12 Jun 2018.
    18. Adem Elveren & Valentine M. Moghadam, 2019. "The impact of militarization on gender inequality and female labor force participation," Working Papers 1307, Economic Research Forum, revised 21 Aug 2019.

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