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Do military expenditures converge in NATO countries? Linear and nonlinear unit root test evidence

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  • Selahattin GÜRİŞ

    (Marmara University, Turkey)

  • Burak GÜRİŞ

    (Istanbul University, Turkey)

  • Muhammed TIRAŞOĞLU

    (Istanbul University, Turkey)

Abstract

It is a public service that states defend their countries against internal and external threats. Military expenditures are made to this end. Although military expenditures contribute to economy, a safe environment is important for economic development. Military expenditures hold an important place within overall expenditures of countries. Although military expenditures and their share within GDP differ, they hold an important place within total public expenditures of countries. However, there aren’t many studies on military expenditures in literature. We tested the convergence hypothesis of military expenditures for NATO countries covering a period from 1953 to 2014 by using linear and nonlinear unit root tests. According to the findings, the conclusion is that the military expenditures of Germany, Greece, Portugal, the UK and Luxembourg converge to the NATO mean whereas the convergence hypothesis does not hold true for other NATO countries.

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  • Selahattin GÜRİŞ & Burak GÜRİŞ & Muhammed TIRAŞOĞLU, 2017. "Do military expenditures converge in NATO countries? Linear and nonlinear unit root test evidence," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(2(611), S), pages 237-248, Summer.
    • Handle: RePEc:agr:journl:v:xxiv:y:2017:i:2(611):p:237-248
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    Cited by:

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    2. Saba Charles Shaaba & Ngepah Nicholas, 2020. "Military expenditure and security outcome convergence in African regional economic communities: evidence from the convergence club algorithm," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 26(1), pages 1-28, February.
    3. Ucler, Gulbahar & Bulut, Umit, 2021. "Re-examination of the Convergence in Military Expenditures across NATO Countries: Do Different Approximations in Modelling Structural Breaks Matter?," Asian Journal of Applied Economics, Kasetsart University, Center for Applied Economics Research, vol. 28(1).
    4. Charles Shaaba Saba & Nicholas Ngepah & Christian Nsiah, 2020. "Convergence in military expenditure and economic growth in Africa and its regional economic communities: evidence from a club clustering algorithm," Cogent Economics & Finance, Taylor & Francis Journals, vol. 8(1), pages 1832344-183, January.
    5. Sedat Alataş & Erkam Sarı, 2021. "An Empirical Investigation on Regional Disparities in Public Expenditures: Province Level Evidence from Turkey," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 158(1), pages 217-240, November.

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