A note on defence spending in turkey: New findings

Selami Sezgin

Defence and Peace Economics, 2000, vol. 11, issue 2, 427-435

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.

Keywords: Turkey; Defence expenditure; Economic growth; Unit root tests (search for similar items in EconPapers)
Date: 2000
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Citations: View citations in EconPapers (8)

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DOI: 10.1080/10430710008404957

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