The Impacts of Sectoral Demand for Military Expenditure on Peace Dividend: A Case for Turkey and Greece

Durmus ozdemir () and Ali Bayar
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Ali Bayar: Free University of Brussels

A chapter in Proceedings of the International Conference on Human and Economic Resources, 2006, pp 283-296 from Izmir University of Economics

Abstract: This paper examines the effect of sectoral demand for military expenditure on the peace dividend between Greece and Turkey by employing a multi region dynamic CGE model. A general purpose of the study is to examine the prospect for conflict resolution if Turkey become a member state for the EU. This would expected to create a peace between the two countriesin, hence a possible cut back on military expenditure. The model allows to analyse several scenarios; a positive scenario is a certain amount of reduction on Military Expenditure/GDP (ME/GDP) ratios. This may cause a decrease in sectoral demand for military expenditures. This re-allocation scenarios may effect the sectoral distributýon and a higher GDP growth, higher private consumption, lower unemployment, lower interst rates, economic stability and increased FDI for Turkey and improved BoP in both countries in a different level. The economic stability and some spillover effects are some other economic benefits to the EU.

Keywords: CGE; dynamic CGE; Greece; Turkey; military expenditure (search for similar items in EconPapers)
Date: 2006
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Persistent link: http://EconPapers.repec.org/RePEc:izm:prcdng:200623

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