The impact of military spending and income inequality on economic growth in Turkey

Töngür, Ünal; Elveren, Adem Yavuz

doi:10.1080/10242694.2014.925324

Cited by 40 publications

(20 citation statements)

References 54 publications

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“…by appreciating skilled labor more) while education adds to this stock (Töngür and Elveren, 2016). On the one hand, there has been a steady increase in education levels and a decline in the inequality of education levels across countries for the last four decades (Castello-Climent and Domenech, 2014), and on the other hand changing technology has resulted in the use of 'less labor with higher skill' consistently.…”

Section: Literature Surveymentioning

confidence: 99%

“…The immense empirical literature on the nexus of growth and inequality provides inconclusive evidence, the results change with respect to disparity in coverage, estimation method, data quality, and inequality measure adopted (Töngür and Elveren, 2016;Cingano, 2014). Although it has been shown that the more unequal an economy is the slower it grows (inter alia Alesina and Rodrik, 1994;Person and Tabellini, 1994;Ravallion, 1995;Peroti, 1996;Garcia-Penalosa and Turnovsky, 2006;Cingano, 2014), it is also argued that problems this negative relationship is not robust due to the lack of high quality data and comparability (Ferreira, 1999).…”

Section: Literature Surveymentioning

confidence: 99%

“…To the best of our knowledge, there is only one empirical study, Töngür and Elveren (2016), in which the authors examines the impact of military spending and income inequality on economic growth in Turkey. That study gives us the basic motivation for this paper.…”

Section: Empirical Strategymentioning

confidence: 99%

“…We adopt the model that is adapted by Töngür and Elveren (2016), departing from Dunne et al (2005) and Dunne and Nikolaidou (2011) based on the augmented Solow growth model that was introduced by Mankiw et al (1992). Töngür and Elveren (2016), in the case of Turkey, examine the relationship between military expenditures and economic growth by considering the Theil pay inequality index provided by the University of Texas Inequality Project (UTIP) for the period of . We extend their analysis to 82 countries for the period of 1988-2008 in a more comprehensive analysis by employing system GMM method and by paying special attention to heterogeneity.…”

Section: Introductionmentioning

confidence: 99%

“…This paper incorporates pay inequality into the defence-growth nexus by utilizing the industrial pay inequality index as a proxy for income inequality in a similar way with Töngür and Elveren (2016). We acknowledge that manufacturing is just one part of overall economic activities; therefore pay inequality and income inequality are not the same things.…”

mentioning

confidence: 99%

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The Nexus of Economic Growth, Military Expenditures, and Income Inequality

Töngür¹,

Elveren²

2016

Self Cite

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This paper examines the effect of military expenditures on economic growth by utilizing dynamic panel data analysis for 82 countries for the period of . Considering the possible effect of inequality on the military expenditures-economic growth nexus, this paper incorporates inequality along with its interaction with human capital into an augmented Solow growth model. The general finding is that military expenditures have a negative impact on economic growth, valid for several model specifications and sensitivity analyses. The negative impact holds when heterogeneity stemming from different country groups (e.g. development level, arms trade, fuel dependency) is considered. Also, the findings show that negative impact of military expenditure on growth for arms exporter and/or arms importer countries is weaker than those for other countries. Regarding income inequality and human capital, the findings suggest that human capital has a positive effect on growth, as expected. Income inequality on the other hand, has negative direct effect on economic growth. Considering these two variables together, the findings show that income inequality deteriorates growth for lower levels of human capital, whereas the impact of inequality on growth turns out to be positive for higher levels of human capital.

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Section: Literature Surveymentioning

confidence: 99%

Section: Literature Surveymentioning

confidence: 99%

Section: Empirical Strategymentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

mentioning

confidence: 99%

See 3 more Smart Citations

The Nexus of Economic Growth, Military Expenditures, and Income Inequality

Töngür¹,

Elveren²

2016

Self Cite

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Nexus between defence spending, economic growth and development: evidence from a disaggregated panel data analysis

Saba

Ngepah

2020

Econ Change Restruct

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The nexus of economic growth, military expenditures, and income inequality

Töngür

Elveren

2016

Qual Quant

Self Cite

View full text Add to dashboard Cite

This paper examines the effect of military expenditures on economic growth by utilizing dynamic panel data analysis for 82 countries for the period of 1988-2008. Considering the possible effect of inequality on the military expenditures-economic growth nexus, this paper incorporates inequality along with its interaction with human capital into an augmented Solow growth model. The general finding is that military expenditures have a negative impact on economic growth, valid for several model specifications and sensitivity analyses. The negative impact holds when heterogeneity stemming from different country groups (e.g. development level, arms trade, fuel dependency) is considered. Also, the findings show that negative impact of military expenditure on growth for arms exporter and/or arms importer countries is weaker than those for other countries. Regarding income inequality and human capital, the findings suggest that human capital has a positive effect on growth, as expected. Income inequality on the other hand, has negative direct effect on economic growth. Considering these two variables together, the findings show that income inequality deteriorates growth for lower levels of human capital, whereas the impact of inequality on growth turns out to be positive for higher levels of human capital.

show abstract

The impact of military spending and income inequality on economic growth in Turkey

Cited by 40 publications

References 54 publications

The Nexus of Economic Growth, Military Expenditures, and Income Inequality

The Nexus of Economic Growth, Military Expenditures, and Income Inequality

Nexus between defence spending, economic growth and development: evidence from a disaggregated panel data analysis

The nexus of economic growth, military expenditures, and income inequality

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