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Political Decisions, Defense And Growth

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  • Oya Erdogdu

Abstract

Considering the importance of military expenditures on political and economical success of a government, this empirical study analyzes the relations between political stability, economic growth and military expenditures. Based on the theoretical model developed by Blomberg (1996), the vector autoregression analyzes results for a democratic country and indicates the significance of military expenditures on political stability and private sector investment decisions.

Suggested Citation

  • Oya Erdogdu, 2008. "Political Decisions, Defense And Growth," Defence and Peace Economics, Taylor & Francis Journals, vol. 19(1), pages 27-35.
    • Handle: RePEc:taf:defpea:v:19:y:2008:i:1:p:27-35
    DOI: 10.1080/10242690701453701
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    10. Christos Kollias & Charis Naxakisb & Leonidas Zarangasb, 2004. "Defence Spending and Growth in Cyprus: A Causal Analysis," Defence and Peace Economics, Taylor & Francis Journals, vol. 15(3), pages 299-307.
    11. Benoit, Emile, 1978. "Growth and Defense in Developing Countries," Economic Development and Cultural Change, University of Chicago Press, vol. 26(2), pages 271-280, January.
    12. Uk Heo, 1999. "Defense Spending and Economic Growth in South Korea: The Indirect Link," Journal of Peace Research, Peace Research Institute Oslo, vol. 36(6), pages 699-708, November.
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    14. Jordin S. Cohen & Randolph Stevenson & Alex Mintz & Michael D. Ward, 1996. "Defense Expenditures and Economic Growth in Israel: The Indirect Link," Journal of Peace Research, Peace Research Institute Oslo, vol. 33(3), pages 341-352, August.
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    Cited by:

    1. Sergey SVESHNIKOV & Victor BOCHARNIKOV, 2009. "Modeling Risk Of International Country Relations," Journal of Applied Economic Sciences, Spiru Haret University, Faculty of Financial Management and Accounting Craiova, vol. 4(4(10)_Win), pages 558-569.
    2. Ferdi Botha, 2016. "The Good African Society Index," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 126(1), pages 57-77, March.
    3. José R. García & Joaquín Murillo & Jordi Suriñach & Esther Vayá, 2018. "Economic impact of the ministry of defence’s budget: methodological design and results for the Spanish economy," Defence and Peace Economics, Taylor & Francis Journals, vol. 29(4), pages 459-473, June.
    4. Dimitrios Karamanis, 2022. "Defence partnerships, military expenditure, investment, and economic growth: an analysis in PESCO countries," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 173, Hellenic Observatory, LSE.
    5. Olayiwola Saheed O. & Oloruntuyi Ayodeji O., 2024. "Defense Spending and Income Growth in Nigeria," Zagreb International Review of Economics and Business, Sciendo, vol. 27(1), pages 97-114.
    6. Ünal Töngür & Adem Yavuz Elveren, 2016. "The impact of military spending and income inequality on economic growth in Turkey," Defence and Peace Economics, Taylor & Francis Journals, vol. 27(3), pages 433-452, June.
    7. Töngür, Ünal & Elveren, Adem, 2013. "The Impact of Military Spending and Income Inequality on Economic Growth in Turkey, 1963-2008," EY International Congress on Economics I (EYC2013), October 24-25, 2013, Ankara, Turkey 251, Ekonomik Yaklasim Association.

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    More about this item

    Keywords

    Defense; Political Stability; Growth; VAR;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models

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