IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/88848.html
   My bibliography  Save this paper

The Effect of Military Expenditures on the Profit Rates in Turkey

Author

Listed:
  • Elveren, Adem Yavuz
  • Özgür, Gökçer

Abstract

This paper analyses the effects of military expenditure on the rate of profits in Turkey during the period of 1950–2008 by employing a Markov-switching autoregression model within a Marxist framework for the first time. Findings show that the effect of military expenditure on profit rates is nonlinear—negative during turbulent years and positive in more tranquil years. The negative effects are larger than positive effects, but the probability of positive effects prevailing is larger.

Suggested Citation

  • Elveren, Adem Yavuz & Özgür, Gökçer, 2018. "The Effect of Military Expenditures on the Profit Rates in Turkey," MPRA Paper 88848, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:88848
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/88848/1/MPRA_paper_88848.pdf
    File Function: original version
    Download Restriction: no

    References listed on IDEAS

    as
    1. Nordhaus, William & Oneal, John R. & Russett, Bruce, 2012. "The Effects of the International Security Environment on National Military Expenditures: A Multicountry Study," International Organization, Cambridge University Press, vol. 66(3), pages 491-513, July.
    2. Fred M. Gottheil, 1986. "Marx versus Marxists on the Role of Military Production in Capitalist Economies," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 8(4), pages 563-573, July.
    3. Ceyhun ELGİN & Tolga Umut KUZUBAŞ, 2012. "Wage-Productivity Gap in Turkish Manufacturing Sector," Iktisat Isletme ve Finans, Bilgesel Yayincilik, vol. 27(316), pages 09-31.
    4. James Cypher, 1974. "Capitalist Planning and Military Expenditures," Review of Radical Political Economics, Union for Radical Political Economics, vol. 6(3), pages 1-19, October.
    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. Magdoff, Harry, 1970. "Militarism and Imperialism," American Economic Review, American Economic Association, vol. 60(2), pages 237-242, May.
    7. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    8. Elveren, Adem Yavuz & Dunning, Rachel, 2017. "Do Military Expenditures Boost Profit Rates?," MPRA Paper 81143, University Library of Munich, Germany.
    9. Reich, Michael, 1972. "Does the U.S. Economy Require Military Spending?," American Economic Review, American Economic Association, vol. 62(2), pages 296-303, May.
    10. Adem Y. Elveren & Sara Hsu, 2016. "Military Expenditures and Profit Rates: Evidence from OECD Countries," Metroeconomica, Wiley Blackwell, vol. 67(3), pages 551-577, July.
    11. Ron Smith & Martin Sola & Fabio Spagnolo, 2000. "The Prisoner's Dilemma and Regime-Switching in the Greek-Turkish Arms Race," Journal of Peace Research, Peace Research Institute Oslo, vol. 37(6), pages 737-750, November.
    12. Goldfeld, Stephen M. & Quandt, Richard E., 1973. "A Markov model for switching regressions," Journal of Econometrics, Elsevier, vol. 1(1), pages 3-15, March.
    13. 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.
    14. Christos Kollias & Thanasis Maniatis, 2003. "Military expenditure and the profit rate in Greece," Defence and Peace Economics, Taylor & Francis Journals, vol. 14(2), pages 117-127.
    15. Duygu Yolcu Karadam & Jülide Yildirim & Nadir Öcal, 2017. "Military expenditure and economic growth in Middle Eastern countries and Turkey: a non-linear panel data approach," Defence and Peace Economics, Taylor & Francis Journals, vol. 28(6), pages 719-730, November.
    16. Smith, R P, 1977. "Military Expenditure and Capitalism," Cambridge Journal of Economics, Oxford University Press, vol. 1(1), pages 61-76, March.
    17. Töngür, Ünal & Hsu, Sara & Elveren, Adem Yavuz, 2015. "Military expenditures and political regimes: Evidence from global data, 1963–2000," Economic Modelling, Elsevier, vol. 44(C), pages 68-79.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Adem Yavuz Elveren & Sara Hsu, 2018. "The Effect of Military Expenditure on Profit Rates: Evidence from Major Countries," World Journal of Applied Economics, WERI-World Economic Research Institute, vol. 4(2), pages 75-94, December.

    More about this item

    Keywords

    military expenditures; profit rate; Turkey;

    JEL classification:

    • B5 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches
    • B51 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Socialist; Marxian; Sraffian
    • H5 - Public Economics - - National Government Expenditures and Related Policies

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:88848. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter). General contact details of provider: http://edirc.repec.org/data/vfmunde.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.