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

Karagol E., SEZGİN S.

DEFENCE AND PEACE ECONOMICS, cilt.15, sa.5, ss.471-480, 2004 (SSCI) identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 15 Sayı: 5
  • Basım Tarihi: 2004
  • Doi Numarası: 10.1080/1024269042000215921
  • Dergi Adı: DEFENCE AND PEACE ECONOMICS
  • Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus
  • Sayfa Sayıları: ss.471-480
  • Anahtar Kelimeler: defence expenditures, external debt, Turkey, debt rescheduling, SERVICING CAPACITY, DEVELOPING-COUNTRIES, ECONOMIC-GROWTH, EXTERNAL DEBT, BURDEN
  • Anadolu Üniversitesi Adresli: Hayır

Özet

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.