Do defence expenditures increase debt rescheduling in Turkey? Probit model approach

Karagol E., SEZGİN S.

DEFENCE AND PEACE ECONOMICS, vol.15, no.5, pp.471-480, 2004 (SSCI) identifier

  • Publication Type: Article / Article
  • Volume: 15 Issue: 5
  • Publication Date: 2004
  • Doi Number: 10.1080/1024269042000215921
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus
  • Page Numbers: pp.471-480
  • Keywords: defence expenditures, external debt, Turkey, debt rescheduling, SERVICING CAPACITY, DEVELOPING-COUNTRIES, ECONOMIC-GROWTH, EXTERNAL DEBT, BURDEN
  • Anadolu University Affiliated: No


This paper empirically investigates the importance of financial and political variables in determining debt rescheduling probabilities in Turkey for 1955-2000. The problem of sovereign debt default and rescheduling has been the subject of substantial academic research during the last two decades. There has been criticism of models of developing countries' indebtedness and rescheduling that rely solely on some economic or financial predictors related to country debt, the foreign exchange sector or the domestic economic situation. Using probit analysis, this paper indicates that financial variables are important determinants of rescheduling probabilities. However, political variables are not significant in our models.