A note on defence spending in Turkey: New findings

SEZGİN S.

DEFENCE AND PEACE ECONOMICS, vol.11, no.4, pp.427-435, 2000 (SSCI) identifier

  • Publication Type: Article / Article
  • Volume: 11 Issue: 4
  • Publication Date: 2000
  • Doi Number: 10.1080/10430710008404957
  • Journal Name: DEFENCE AND PEACE ECONOMICS
  • Journal Indexes: Social Sciences Citation Index (SSCI)
  • Page Numbers: pp.427-435
  • Keywords: Turkey, defence expenditure, economic growth, unit root tests, ECONOMIC-GROWTH
  • Anadolu University Affiliated: No

Abstract

The relationship between defence spending and economic growth has been examined extensively in recent years using the Feder (1983) model. These studies suffer from poor statistical results. In this paper, the earlier findings of Sezgin (1997), which used the Feder model are re-estimated. Firstly, the stationarity of variables is tested. Due to the non-stationarity of some variables, regressions are performed using first differences of variables. Secondly, lags are introduced into the Feder model. The statistical results are highly improved. Not only is a strong positive association between defence spending and economic growth found for Turkey, but also human capital is positively correlated to Turkish economic growth with a lag.