The Demand for Turkish Defence Expenditure

Abstract

Although a number of studies concerning Turkish defence-growth relation have been published in recent years, little attention is given the demand for Turkish defence expenditure. This is an important issue for understanding which variables contribute to the determination of the demand for military expenditure. However, it is difficult to develop a general theory or a standard empirical approach for the determination of the demand military expenditure. This study models and estimates the demand for Turkish defence expenditure for the period 1951-1998 using autoregressive distributed lag approach to cointegration (ARDL) following the methodology outlined in Pesaran and Shin (1999). This procedure can be applied regardless of the stationary properties of the variables in the sample and allows for inferences on long-run estimates, which is not possible under alternative cointegration procedures. The findings suggest that Turkish defence spending is determined by NATO's defence spending, Greece's defence spending and some security considerations.

Does Nominal Devaluation Precede Real Devaluation? The Case of The Philippines

“…As argued by Sezgin and Yildirm (2002), that ARDL can be applied regardless of stationary properties of variables in the sample and allows for inferences on long run estimates, which is not possible under alternative co-integration techniques. In contrast, according to Ouattara (2004) in the presence of I(2) variables, the computed F-statistics provided by PSS (2001) become invalid because the bounds test is based on the assumption that the variables should be I(0) or I(1).…”

Domestic political and external security determinants of the demand for greek military expenditure

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Consequential Effects of Defence Expenditure on Economic Growth of Saudi Arabia: 1970-2012

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