MILITARY EXPENDITURE AND ECONOMIC GROWTH IN MIDDLE EASTERN COUNTRIES: A DYNAMIC PANEL DATA ANALYSIS

Julide Yildirim, Selami Sezgin and Nadir Ocal

Defence and Peace Economics, 2005, vol. 16, issue 4, 283-295

Abstract: Defence expenditures have both costs and benefits to the economy. The costs of defence expenditures are mainly emphasized as opportunity costs. On the other hand, defence spending may have growth-promoting potential benefits: a rise in defence spending may result in a higher aggregate demand, production and employment. This paper examines empirically the effects of military expenditures on economic growth for Middle Eastern countries and Turkey, for the time-period 1989-1999. The relationship between military expenditure and economic growth is investigated by using cross-section and dynamic panel estimation techniques. Empirical analysis indicates that military expenditure enhances economic growth in the Middle Eastern countries and Turkey as a whole.

Keywords: Military expenditure; Economic growth; Defence economics; Dynamic panel data analysis (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (90)

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DOI: 10.1080/10242690500114751

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