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Investigation of the Greek – Turkish Military Spending Relation

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  • Mary Michail
  • Nicholas Papasyriopoulos

Abstract

In this paper, the relation between the Greek and Turkish military spending is investigated, examining first the identification of its exact statistical form, and second, a diachronically constant ratio between the two magnitudes. Using annual nominal data over the period from 1949 to 2008, the stationarity of the series is tested by performing a sequential Augmented Dickey-Fuller (ADF) and a Kwiatkowski–Phillips–Schmidt–Shin (KPSS) unit root test. Both the long–run equilibrium relation among the series of the Greek and Turkish military spending and their diachronically constant ratio are estimated following a Johansen cointegration analysis. Copyright International Atlantic Economic Society 2012

Suggested Citation

  • Mary Michail & Nicholas Papasyriopoulos, 2012. "Investigation of the Greek – Turkish Military Spending Relation," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 18(3), pages 259-270, August.
    • Handle: RePEc:kap:iaecre:v:18:y:2012:i:3:p:259-270:10.1007/s11294-012-9362-3
    DOI: 10.1007/s11294-012-9362-3
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    Cited by:

    1. Christos Kollias & Suzanna-Maria Paleologou & Andreas Stergiou, 2016. "Military expenditure in Greece: Security challenges and economic constraints," Economics of Peace and Security Journal, EPS Publishing, vol. 11(1), pages 28-34, April.

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    More about this item

    Keywords

    Military spending; Constant defense spending ratio; Equilibrium relation; C10; H50;
    All these keywords.

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General

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