The effects of military expenditures on Turkish economy : a general equilibrium model analysis
Author(s)
Advisor
Akdeniz, LeventDate
2005Publisher
Bilkent University
Language
English
Type
ThesisItem Usage Stats
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Abstract
The purpose of this thesis is to investigate the effects of military expenditures
over the period of 1980-2000, in Turkey. The analysis is conducted by the aid of
computable general equilibrium model borrowed from Yeldan. Extending the model so as
to include the military expenditures, major impacts of military spending on the macro
economic variables of Turkey are tried to be observed.
The model examines the effects of military expenditures under two main headings: (i)
impact of military expenditures when expenditures are cut to the 3% GDP share
assuming Turkey followed NATO’s military expenditure policy after 1988 (ii) impact of
military expenditures due to the increasing volume of conflict and armament
expenditures coming with it, pushing the level of expenditures to 7% GDP share.
The model suggests substantial economic effects which are in opposite direction with
the military expenditures. Especially, in government savings and investment, significant contradiction is observed. Other macro economic variables such as GDP, disposable
income, exports and imports are in accordance with the movement in savings and
investment.