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The Impacts of Sectoral Demand for Military Expenditure on Peace Dividend: A Case for Turkey and Greece

In: Proceedings of the Conference on Human and Economic Resources

Author

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  • Durmuþ Özdemir

    (Istanbul Bilgi University)

  • Ali Bayar

    (Free University of Brussels)

Abstract

This paper examines the effect of sectoral demand for military expenditure on the peace dividend between Greece and Turkey by employing a multi region dynamic CGE model. A general purpose of the study is to examine the prospect for conflict resolution if Turkey become a member state for the EU. This would expected to create a peace between the two countriesin, hence a possible cut back on military expenditure. The model allows to analyse several scenarios; a positive scenario is a certain amount of reduction on Military Expenditure/GDP (ME/GDP) ratios. This may cause a decrease in sectoral demand for military expenditures. This re-allocation scenarios may effect the sectoral distributýon and a higher GDP growth, higher private consumption, lower unemployment, lower interst rates, economic stability and increased FDI for Turkey and improved BoP in both countries in a different level. The economic stability and some spillover effects are some other economic benefits to the EU.

Suggested Citation

  • Durmuþ Özdemir & Ali Bayar, 2006. "The Impacts of Sectoral Demand for Military Expenditure on Peace Dividend: A Case for Turkey and Greece," Papers of the Annual IUE-SUNY Cortland Conference in Economics, in: Oguz Esen & Ayla Ogus (ed.), Proceedings of the Conference on Human and Economic Resources, pages 283-296, Izmir University of Economics.
    • Handle: RePEc:izm:prcdng:200623
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    References listed on IDEAS

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    1. Christos Kollias, 1995. "Preliminary findings on the economic effects of Greek military expenditure," Applied Economics Letters, Taylor & Francis Journals, vol. 2(1), pages 16-18.
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    4. Jurgen Brauer, 2002. "Survey and Review of the Defense Economics Literature on Greece and Turkey: What Have We Learned?," Defence and Peace Economics, Taylor & Francis Journals, vol. 13(2), pages 85-107.
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    6. Christos Kollias, 1997. "Defence spending and growth in turkey 1954-1993: A causal analysis," Defence and Peace Economics, Taylor & Francis Journals, vol. 8(2), pages 189-204.
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    Cited by:

    1. 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.

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