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Political Decisions, Defence and Growth

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  • Erdogdu, Oya Safinaz

Abstract

Considering the importance of military expenditures on political and economical success of a government, this empirical study analyzes the relations between political stability, economic growth and military expenditures. Based on the theoretical model developed by Blomberg (1996), the vector autoregression analyzes results for a democratic country indicates the significance of military expenditures on political stability and private sector investment decisions.

Suggested Citation

  • Erdogdu, Oya Safinaz, 2006. "Political Decisions, Defence and Growth," MPRA Paper 2520, University Library of Munich, Germany, revised Feb 2007.
  • Handle: RePEc:pra:mprapa:2520
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    References listed on IDEAS

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    7. Julide Yildirim & Selami Sezgin, 2005. "Democracy and Military Expenditure: A Cross-Country Evidence," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 12(1), pages 93-100, July.
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    9. Deger, Saadet & Sen, Somnath, 1990. "Military Expenditure: The Political Economy of International Security," OUP Catalogue, Oxford University Press, number 9780198291411.
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    11. Benoit, Emile, 1978. "Growth and Defense in Developing Countries," Economic Development and Cultural Change, University of Chicago Press, vol. 26(2), pages 271-280, January.
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    Cited by:

    1. Sergey SVESHNIKOV & Victor BOCHARNIKOV, 2009. "Modeling Risk Of International Country Relations," Journal of Applied Economic Sciences, Spiru Haret University, Faculty of Financial Management and Accounting Craiova, vol. 4(4(10)_Win), pages 558-569.
    2. Ferdi Botha, 2016. "The Good African Society Index," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 126(1), pages 57-77, March.
    3. José R. García & Joaquín Murillo & Jordi Suriñach & Esther Vayá, 2018. "Economic impact of the ministry of defence’s budget: methodological design and results for the Spanish economy," Defence and Peace Economics, Taylor & Francis Journals, vol. 29(4), pages 459-473, June.
    4. Ünal Töngür & Adem Yavuz Elveren, 2016. "The impact of military spending and income inequality on economic growth in Turkey," Defence and Peace Economics, Taylor & Francis Journals, vol. 27(3), pages 433-452, June.
    5. Töngür, Ünal & Elveren, Adem, 2013. "The Impact of Military Spending and Income Inequality on Economic Growth in Turkey, 1963-2008," EY International Congress on Economics I (EYC2013), October 24-25, 2013, Ankara, Turkey 251, Ekonomik Yaklasim Association.

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    More about this item

    Keywords

    Defense; Political Stability; Growth; VAR;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models

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