Military spending multiplier of Turkey : an empirical analysis for Turkey
Author
Kasalak, Serhat
Advisor
Özyıldırım, Süheyla
Date
2006Publisher
Bilkent University
Language
English
Type
ThesisItem Usage Stats
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Abstract
This study estimates the military spending multiplier of Turkey over the period of 1980-
2004 by employing a four-equation econometric model. The different views that appear
in the literature on the relationship between defense spending and economic growth are
identified and it is concluded that there is no agreement as to the exact nature of the
relationship between defense spending and growth. The study also deals with the current
trends in Turkish economy, analyzes government spending and military spending of
Turkey. The results of this study indicate that defense expenditures have no significant
direct or indirect effect on economic growth. On the other hand, there is an insignificant
positive military spending multiplier of 0.04. In other words, 1 percent increase in
military expenditures results in a 0.04 percent (not statistically significant) increase in
GNP.