The Long-Run Linkages Between Education, Health and Defence Expenditures and Economic Growth: Evidence From Turkey

Eryigit, Sibel Bali; Eryiğit, Kadir Yasin; Selen, Ufuk

doi:10.1080/10242694.2012.663577

Cited by 34 publications

(25 citation statements)

References 56 publications

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“…Arısoy et al [ 18 ] used the same methodology in Turkey but over a longer time frame (1960–2005) and came to a conclusion that there is a positive relationship between health expenditure and economic growth. A similar study in Turkey by Eryiğit et al [ 19 ] from 1950 to 2005 equally confirmed a positive relationship between health expenditure and economic growth.…”

Section: Introductionsupporting

confidence: 62%

Health expenditure and economic growth - a review of the literature and an analysis between the economic community for central African states (CEMAC) and selected African countries

2017

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African leaders accepted in the year 2001 through the Abuja Declaration to allocate 15% of their government expenditure on health but by 2013 only five (5) African countries achieved this target. In this paper, a comparative analysis on the impact of health expenditure between countries in the CEMAC sub-region and five other African countries that achieved the Abuja declaration is provided. Data for this study was extracted from the World Development Indicators (2016) database, panel ordinary least square (OLS), fully modified ordinary least square (FMOLS) and dynamic ordinary least square (DOLS) were used as econometric technic of analysis. Results showed that health expenditure has a positive and significant effect on economic growth in both samples. A unit change in health expenditure can potentially increase GDP per capita by 0.38 and 0.3 units for the five other African countries that achieve the Abuja target and for CEMAC countries respectively, a significant difference of 0.08 units among the two samples. In addition, a long-run relationship also exist between health expenditure and economic growth for both groups of countries. Thus African Economies are strongly advised to achieve the Abuja target especially when other socio-economic and political factors are efficient.

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Section: Introductionsupporting

confidence: 62%

Health expenditure and economic growth - a review of the literature and an analysis between the economic community for central African states (CEMAC) and selected African countries

2017

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“…Although the existing literature evidences the influence of military spending on income inequality, the association between the two is mixed and does not provide clear indication as to whether the association between the two is positive or negative (Abell, 1994; Ali, 2007; Ali & Galbraith, 2003; Meng et al, 2013; Tongir & Elveren, 2012). Nevertheless, the findings of greater econometric research support the view of negative relationship between military expenditure and income inequality (Ali, 2012; Elveren, 2012; Eryigit, Eryigit, & Selen, 2012; Raza & Shahbaz, 2014). While a few established positive associations between the income inequality and military spending (Ali & Galbraith, 2003; Vadlamannati, 2008).…”

Section: Literature Reviewmentioning

confidence: 75%

“…Similarly, cointegration framework also suggests the long-run association of defence expenditures and income equality in case of China. In Turkey, Eryigit et al (2012) examine the long-run association between the military spending and economic growth from 1950 to 2005. The results of cointegration methodology indicate the negative long-run association of economic growth with military expenditures of the country.…”

Section: Literature Reviewmentioning

confidence: 99%

Does Military Spending Impede Income Inequality? A Comparative Study of Pakistan and India

Sharif

Afshan

2017

Global Business Review

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There are few empirical models that analyse the interactive relationship between defence spending and income inequality in economic theories (Meng, Lucyshyn, & Li, 2013). This proposition is addressed in the present study with sound statistical investigation by utilizing annual time series data from 1980 to 2014. The autoregressive distributed lag (ARDL) bound testing cointegration approach, Johansen and Juselius cointegration approach and Gregory and Hansen structural break cointegration approach altogether confirm the valid long-run relationship between military expenditure and income inequality in both countries. Results of long-run analysis also indicate the positive significant effect of military expenditure on income inequality in both India and Pakistan. A bidirectional causal relationship between military spending and income inequality is found from the variance decomposition method in case of India. However, for Pakistan, there exists a unidirectional causality of military expenditure with income inequality. The direction of this causal relationship is run from excessive military spending leading to higher income inequality in the country. Lastly, the results of rolling window analysis established that the coefficient of military expenditure remained positive for last 16 years, that is, from 1999 in both countries. The result endorsed that military spending is an essential factor of income inequality and, thus, the policymaker should focus on this option to regulate income inequality in Pakistan and India. Furthermore, policymakers should also emphasize on categorizing their budget expenditures on more social and developing welfare expenditure as an alternative to improve the standards of living and reduce the income inequality in Pakistan and India.

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“…The same study by Karagol (2006) also found out that military spending had a huge negative impact on economic growth within the first two years and faded thereafter in Turkey. According to Eryigit et al (2012), military expenditure had a negative impact on economic growth whilst education and health expenditures positively impacted on the economy in Turkey both in the short and long run. A budgetary trade-off between education-health and military expenditures was also discovered in Turkey, revealed Eryigit et al (2012).…”

Section: Review Of Related Literaturementioning

confidence: 99%

“…According to Eryigit et al (2012), military expenditure had a negative impact on economic growth whilst education and health expenditures positively impacted on the economy in Turkey both in the short and long run. A budgetary trade-off between education-health and military expenditures was also discovered in Turkey, revealed Eryigit et al (2012). Yakovlev (2007) revealed that high military spending lead to reduced economic growth whether a country is a net exporter or net importer of arms.…”

Section: Review Of Related Literaturementioning

confidence: 99%

Military expenditure and the economy of Zimbabwe

Tsaurai¹

2014

JGR

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This study examines the causal relationship between military expenditure and economic growth in Zimbabwe. The causality relationship between government military expenditure and economic growth has so far received attention from many economists, the dominant ones being Wagner (1890) and Keynes (1936). According to literature, there currently exist four perspectives around the causality relationship military expenditure and economic growth. The first perspective by Keynes (1936) suggests that military expenditure spur economic growth whilst the second perspective by Wagner (1890) mentions that economic growth affects military expenditure. The third perspective says both military expenditure and economic growth affects each other whilst the fourth perspective suggests the existence of no causality relationship at all between military expenditure and economic growth. The results of this study proves that military expenditure does not directly influence economic growth whilst economic growth does also not directly influence military expenditure both in the short and long run.

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The Long-Run Linkages Between Education, Health and Defence Expenditures and Economic Growth: Evidence From Turkey

Cited by 34 publications

References 56 publications

Health expenditure and economic growth - a review of the literature and an analysis between the economic community for central African states (CEMAC) and selected African countries

Health expenditure and economic growth - a review of the literature and an analysis between the economic community for central African states (CEMAC) and selected African countries

Does Military Spending Impede Income Inequality? A Comparative Study of Pakistan and India

Military expenditure and the economy of Zimbabwe

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