The demand for Turkish defence expenditure

SEZGİN S., Yildirim J.

DEFENCE AND PEACE ECONOMICS, cilt.13, sa.2, ss.121-128, 2002 (SSCI) identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 13 Sayı: 2
  • Basım Tarihi: 2002
  • Doi Numarası: 10.1080/10242690210973
  • Dergi Adı: DEFENCE AND PEACE ECONOMICS
  • Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus
  • Sayfa Sayıları: ss.121-128
  • Anahtar Kelimeler: ARDL models, cointegration, model selection, Turkey, unit root tests
  • Anadolu Üniversitesi Adresli: Hayır

Özet

Although a number of studies concerning Turkish defence-growth relation have been published in recent years, little attention is given the demand for Turkish defence expenditure. This is an important issue for understanding which variables contribute to the determination of the demand for military expenditure. However, it is difficult to develop a general theory or a standard empirical approach for the determination of the demand military expenditure. This study models and estimates the demand for Turkish defence expenditure for the period 1951-1998 using autoregressive distributed lag approach to cointegration (ARDL) following the methodology outlined in Pesaran and Shin ( 1999). This procedure can be applied regardless of the stationary properties of the variables in the sample and allows for inferences on long-run estimates, which is not possible under alternative cointegration procedures. The findings suggest that Turkish defence spending is determined by NATO's defence spending, Greece's defence spending and some security considerations.