An empirical note on external debt and defence expenditures in Turkey

Sezgin, Selami

doi:10.1080/1024269032000110568

Cited by 45 publications

(26 citation statements)

References 2 publications

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“…The empirical results suggest that military burden exerts positive impact on external debt. Sezgin (2004) empirically tests the relationships between defence expenditures and external debt, using the EngleGranger methodology. The results indicate no conclusive evidence of the relationship between defence and debt in Turkey during 1979-2000.…”

Section: Literature Reviewmentioning

confidence: 99%

Does military expenditure increase external debt? Evidence from Asia

Azam

Feng

2015

Defence and Peace Economics

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This article empirically explores the effect of military spending on external debt, using a sample of ten Asian countries over the years from 1990 to 2011. The Hausman's test suggests that the random-effects model is preferable; however, both random-effects and fixed-effects models are used in this research. The empirical results show that the effect of military spending on external debt is positive, while the effects of foreign exchange reserves and of economic growth on external debt are negative. For developing countries caught in security dilemma, military expenditure often requires an increase in external debt, which may affect economic development negatively.

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Section: Literature Reviewmentioning

confidence: 99%

Does military expenditure increase external debt? Evidence from Asia

Azam

Feng

2015

Defence and Peace Economics

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“…In such situation, use of log-linear specification is better option for time series analysis and it directly produces elasticity. Log-linear specification provides better and unbiased empirical evidence (Sezgin, 2004). In the light of above discussion, loglinear equation for the empirical exercise is modeled to assess the effect of military spending, economic growth and investment on external debt: …”

Section: Modeling and Justifications For The Variablesmentioning

confidence: 99%

Does Military Spending Explode External Debt in Pakistan?

Shahbaz

Shabbir

Butt

2013

Defence and Peace Economics

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Abstract:This paper explores the effect of military expenditures on external debt in case of Pakistan over the period of . For this purpose, ARDL bounds testing approach is used to examine cointegration between the variables. ADF, P-P and ADF-GLS, Clemente et al. (1998) unit root tests are applied to check the order of integration of variables. OLS and ECM regressions approaches are employed to investigate marginal impact of military spending on external debt in long and short run.Our findings indicate cointegration which confirms long run relationship between military expenditures, external debt, economic growth and investment. The results reveal that a rise in military expenditures increases the stock of external debt. The inverse effect of economic growth on external debt is found and an increase in investment is also increasing external debt in the country. This study invites policy makers to approach the problem of curtailing external debt in innovative ways in case of Pakistan.

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“…In a more recent literature contribution Sezgin (2004) considered the relation between military debt and arm imports for the case of Turkey. As direct data are not available on cash payments for arms imports and military debt, he resorted to an indirect analysis and presented the likely impact of defense on external indebtedness via a model of debt and arms imports (in fact arms transfers to Turkey).…”

Section: Literature Reviewmentioning

confidence: 99%

The Interrelationship between Military Expenditure and External Debt: Patterns of Causation in Northern Africa Countries

Georgantopoulos¹

2011

JEBS

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It is supported by academics and scholars that defense expenditure can significantly affect a country's economic growth and in some cases it influences external debt having implications in various macroeconomic indicators. However, relevant empirical studies have produced contradictory evidence while the literature in this field remains relatively poor. In this spirit, this survey investigates the causal links between military expenditure and external debt for four emerging Northern Africa countries (i.e. Egypt, Tunisia, Algeria and Morocco) during the period 1988-2009. Empirical findings on the long-term relationship between the tested variables are based on cointegration test. The Granger Causality test results using Vector Auto Regression (VAR) estimates and the Error Correction Model imply that there is no dynamic causal link between military expenditure and external debt for Tunisia, Algeria and Morocco. On the other hand regarding Egypt, results imply that a strong unidirectional causality exists running from defense expenditure to external debt. Collectively, empirical calculations show that military burden do not have any significant impact on most Northern Africa countries. The only exception is the case of Egypt; empirical results show that military expenditure robustly affect the country's external debt. These are the only findings provided from this study that validate the hypothesis that military burden may be important in determining the evolution of debt in developing countries.

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An empirical note on external debt and defence expenditures in Turkey

Cited by 45 publications

References 2 publications

Does military expenditure increase external debt? Evidence from Asia

Does military expenditure increase external debt? Evidence from Asia

Does Military Spending Explode External Debt in Pakistan?

The Interrelationship between Military Expenditure and External Debt: Patterns of Causation in Northern Africa Countries

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