International Conference on Eurasian Economies
18-20 June 2018 – Tashkent, UZBEKISTAN
Paper detail
Paper ID : 2134
Status : Paper published
Language : Turkish
Topic : Growth and Development
Presenter: Asst. Prof. Dr. Ahmet Fatih Aydemir
Session : 1D Büyüme
Relations Between Military Spending and Economic Growth in Turkey (1980-2016)
Türkiye’de Askeri Harcamalar ile Ekonomik Büyüme Arasındaki İlişkiler (1980-2016)
- Asst. Prof. Dr. Dilek Özdemir (Atatürk University, Türkiye)
- Prof. Dr. Cevat Gerni (Istanbul Beykent University, Türkiye)
- Asst. Prof. Dr. Ahmet Fatih Aydemir (Atatürk University, Türkiye)
- Prof. Dr. Ömer Selçuk Emsen (Atatürk University, Türkiye)
Abstract
It cannot be said that military expenditure and economic growth relationship have reached a consensus both theoretically and empirically. The basic argument of the claim that military spending will increase national income is that if the economy is unemployed, the increase in spending, including military spending, will increase national income by expanding demand. Whereas, the argument that military spending will have a negative impact on the national income is claimed due to causing the inefficiency of the resources in the economy and thus to suppress the growth by causing resource mobility from productive sectors to the non-productive sectors. On the purpose of determining which of these two opposing ideas whether committed in Turkey’s economy, military expenditures have been added to Solow growth model and econometric analyzes have involved the period of 1980-2016. In the light of findings, it is revealed that second type of hypothesis is valid that military spending has a negative effect on economic growth.
JEL codes:
Özdemir, Dilek, Gerni, Cevat, Aydemir, Ahmet Fatih, Emsen, Ömer Selçuk (2018). "Relations Between Military Spending and Economic Growth in Turkey (1980-2016)" in Proceedings of International Conference of Eurasian Economies 2018, pp.376-383, Tashkent, UZBEKISTAN.
DOI: https://doi.org/10.36880/C10.02134
