The Effects of Military Expenditures on Economic Growth and Inflation: Evidence from Turkey

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Kyriakos Emmanouilidis ◽  
Christos Karpetis
Keyword(s):  
Economic Growth ◽  
Theoretical Analysis ◽  
Monetary Theory ◽  
Time Model ◽  
Discrete Time Model ◽  
Long Run ◽  
Macroeconomic Impact ◽  
Military Expenditures ◽  
Open Question ◽  
The Military

Abstract The hypothesis that military spending affects economic growth and other aspects of the economy has been under scrutiny over the last decades. However, the macroeconomic impact of defense outlays is still an open question for researchers and policymakers. Aiming to contribute to the existing debate, this paper combines Keynesian with monetary theory and develops a discrete-time model that allows for potential fiscal-monetary coordination for financing the military sector in order to examine the effects of defense outlays on income and inflation. Τhe theoretical analysis suggests that military budget expansions can only have temporary effects on income, as in the long run, their impact on the economy is solely inflationary. However, the empirical findings associated with the economy of Turkey are not fully consistent with the theoretical conclusions of the specified model.

Military Expenditures and Economic Growth in Central and Eastern EU Countries: Evidence from the Post-Cold War Era

2017 ◽  
Vol 25 (3) ◽  
pp. 453-462 ◽  
Author(s):  
Mert Topcu ◽  
İlhan Aras
Keyword(s):  
Economic Growth ◽  
Panel Cointegration ◽  
Eastern European ◽  
The European Union ◽  
New Members ◽  
Post Cold War ◽  
Long Run ◽  
Short Run ◽  
Military Expenditures ◽  
Eastern European Countries

Although the relationship between military expenditures and economic growth is well documented for the old members of the European Union, empirically little is known for the new members. Thus, the goal of this paper is to investigate the economic impact of military expenditures in Central and Eastern European countries employing panel cointegration and causality methods for the period 1993–2013. Findings indicate that the variables in question do not move together in the long run and the direction of causality in the short run is from economic growth to military expenditures. The implications of the results for international relations are discussed.

scholarly journals Bringing the Military Back in: Military Expenditures and Economic Growth 1990 to 2003

2008 ◽  
pp. 142-172 ◽  
Author(s):  
Jeffrey Kentor ◽  
Edward Kick
Keyword(s):  
Economic Growth ◽  
National Development ◽  
Military Spending ◽  
Developed Countries ◽  
Less Developed Countries ◽  
Least Developed Countries ◽  
Military Organizations ◽  
Military Expenditures ◽  
Military Institution ◽  
The Military

After the “peace bonus” era, global military expenditures have escalated sharply despite some worldwide declines in military personnel. Theories on the economic impacts of the military institution and escalated military spending greatly differ and include arguments that they either improve domestic economic performance or crowd out growth-inducing processes. Empirical findings on this matter are inconclusive, in part due to a failure to disentangle the various dimensions of military expenditures. We further suggest that modern sociology's relative inattention to such issues has contributed to these shortcomings. We explore a new dimension of military spending that clarifies this issue—military expenditures per soldier —which captures the capital intensiveness of a country’s military organization. Our cross-national panel regression and causal analyses of developed and less developed countries from 1990 to 2003 show that military expenditures per soldier inhibit the growth of per capita GDP, net of control variables, with the most pronounced effects in least developed countries. These expenditures inhibit national development in part by slowing the expansion of the labor force. Labor-intensive militaries may provide a pathway for upward mobility, but comparatively capital-intensive military organizations limit entry opportunities for unskilled and under- or unemployed people. Deep investments in military hardware also reduce the investment capital available for more economically productive opportunities. We also find that arms imports have a positive effect on economic growth, but only in less developed countries.

scholarly journals The Relationships between Military Expenditures and Unemployment in G-20 States

2016 ◽  
Author(s):  
Ahmet Fatih Aydemir ◽  
Dilek Özdemir ◽  
Ömer Selçuk Emsen
Keyword(s):  
Economic Growth ◽  
Military Spending ◽  
Military Expenditure ◽  
Negative Effects ◽  
The Public ◽  
Developed Economies ◽  
Positive Effects ◽  
Military Expenditures ◽  
Liberal Approach ◽  
The Military

The effects of the military expenditure on the economic growth and consequently on the employment has been the primary topic of the discussing in the literature of economics. Considering that the military expenditures generally emerge as a sub-item of the public spending, it has been asserted by the liberal approach that the principle of the non-productiveness of the public sector would be even more applicable in the military expenditures. None the less, using the military spending as a tool to lead an economy that feature underemployment constitutes the positive aspect of the views to the military expenditure and this is also the case of the prediction of the Keynesian economy. In this study, the effects of the military expenditure on the unemployment, which is a reflection of the effects of the economic growth, are analyzed as the subject matter. The findings revealed that the military spending has positive effects on the unemployment in some G20 states while it also has negative effects in some and has neutral effects in others. In addition, it is further indicated that the positive effects are experienced in relatively advanced economies, the negative effects emerge in relatively less developed economies, and the countries with abundant natural resources experience neutral effects.

Military Economy and Economic Growth: Bidirectional Effects in Transition Economies of Eurasia

2022 ◽  
pp. 097491012110672
Author(s):  
Kiryl Rudy
Keyword(s):  
Economic Growth ◽  
Transition Economies ◽  
Armed Forces ◽  
Negative Influence ◽  
Economic Consequences ◽  
Military Expenditures ◽  
The Military ◽  
Positive Effect ◽  
Bidirectional Effects ◽  
Effect On Growth

Recently, the worrisome rise of military economy in Eurasian transition economies has raised concerns on what is behind this trend and what are its economic consequences. Based on the evidence from 26 Eurasian countries selected into two subgroups “Russia+10” and “15 Central and Eastern European” (CEE) countries over the period from 1991 to 2019, this article focuses on the military economy overview in this region and demonstrates the result of panel data estimations of bidirectional relation between military economy indicators and economic growth. The study shows that in “Russia+10,” military expenditures to GDP and to government spending have a positive effect on growth, and economic growth has a negative influence on these two indicators. Moreover, armed forces to labor forces have a positive bidirectional relation with economic growth in “Russia+10.” For the samples of “15 CEE” and all Eurasian countries, there are not always statistically significant results to offer clear conclusion on bidirectional effects between military expenditures to GDP and to budget expenses and economic growth. Armed forces to labor forces show a positive effect on growth in Eurasia and “15 CEE” countries.

Fast-Scale Bifurcation Analysis in One-Cycle Controlled H-Bridge Inverter

2016 ◽  
Vol 26 (12) ◽  
pp. 1650199 ◽  
Author(s):  
Fang Yang ◽  
Lihui Yang ◽  
Xikui Ma
Keyword(s):  
Theoretical Analysis ◽  
Discrete Time ◽  
Jacobian Matrix ◽  
Stability Boundary ◽  
Period Doubling ◽  
Time Model ◽  
Practical Applications ◽  
Discrete Time Model ◽  
The Matrix ◽  
Proper Values

This paper discusses the fast-scale instability in the one-cycle controlled H-bridge inverter which is widely used in practical applications. Simulations show that the fast-scale instability which occurs around the peak value of the inductive current is a type of local instability. The discrete-time model is derived to analyze the fast-scale instability. According to the Jacobian matrix derived from the discrete-time model, the theoretical analysis shows that the fast-scale instability manifests itself as a period-doubling bifurcation occurs, which reveals the intrinsic mechanism of the instability of one-cycle controlled H-bridge inverter. Furthermore, with the approximation of the matrix exponential in the discrete-time model and based on the Jacobian matrix, the stability boundary is obtained by the analytical expression which is helpful to select the proper values of parameters for avoiding the fast-scale instability. The experiments are carried out to validate the results of the simulation and theoretical analysis. It is shown that the analysis method is able to facilitate the design of the inverter.

scholarly journals Analysis of mergers and acquisitions between 2009 and 2020

2021 ◽  
Vol 30 (4) ◽  
pp. 1-18
Author(s):  
Natalya Chernenko ◽  
Tetiana Moiseienko ◽  
Olena Korohodova ◽  
Yaroslava Hlushchenko
Keyword(s):  
Economic Growth ◽  
Regression Analysis ◽  
Mergers And Acquisitions ◽  
Global Economy ◽  
Polynomial Regression ◽  
Behaviour Pattern ◽  
Time Model ◽  
Discrete Time Model ◽  
Implementation Costs ◽  
Transnational Companies

This paper studies the dynamics and trends in processes of mergers and acquisitions in a highly competitive and global economic environment. The aim of this study is to analyse and divide into periods M&A agreements in the global economy. The study produces a precise definition and discusses benefits and drawbacks of such horizontal and vertical agreements. The authors discuss historical waves of mergers and acquisitions processes and present 11 individual periods containing special aspects and description of types of the agreements, as well as supplement the periods with COVID-19 pandemic flow for 2020-2021. A polynomial regression analysis is used to predict the mechanism, results and magnitude of mergers and acquisitions. Furthermore, a discrete time model enables studying behaviour pattern of mergers and acquisitions happened during 2009-2020. The results demonstrate that transnational companies are greatly attributed to economic growth through mergers and acquisitions despite their rather high preparation and implementation costs. It may be expected an escalation of capital redistribution among pharmaceutical and bioengineering companies in a post-pandemic period due to increased M&A agreements.

scholarly journals Empirical Analysis of the Macroeconomic impact of Foreign Aid on Pakistan Economy (1972-2014)

2021 ◽  
Vol 7 (3) ◽  
pp. 587-596
Author(s):  
Hifsa Bibi ◽  
Amjad Amin ◽  
Danish Alam
Keyword(s):  
Economic Growth ◽  
Foreign Aid ◽  
Empirical Analysis ◽  
Research Work ◽  
Secondary Data ◽  
Foreign Assistance ◽  
Long Run ◽  
Depth Analysis ◽  
Macroeconomic Impact ◽  
Short Run

Purpose: Although Pakistan receives large quantity of foreign aid, like other developing countries, but it remains more dependent on foreign assistance for economic development since independence.  This situation has commenced a vigorous discussion on aid-growth effectiveness. Methodology: This research work evaluates the macroeconomic impact of foreign aid on Pakistan economy by using secondary data. The empirical analysis is based on ARDL cointegration approach after testing for unit root, using the data for the period 1972-2014. Findings: The findings suggest there is no long run relationship between Foreign aid and Economic Growth. However, there exists negative short run relation between Foreign aid and Economic Growth of Pakistan. Implications: Based on the study findings, the study recommends that government of Pakistan should find alternate sources of financing as the relation between foreign aid and economic growth is found negative and insignificant. The in depth analysis of the study made it evident that allocation of aid to those sectors of the economy which really needs development, is more productive, provided that the country should use aid funds in the right direction, as corruption less economy prosper more rapidly.

What goes up, must come down? The asymmetric effects of economic growth and international threat on military spending

2017 ◽  
Vol 54 (6) ◽  
pp. 791-805 ◽  
Author(s):  
Rosella Cappella Zielinski ◽  
Benjamin O Fordham ◽  
Kaija E Schilde
Keyword(s):  
Economic Growth ◽  
World War Ii ◽  
Military Spending ◽  
Economic Decline ◽  
Cross Sectional ◽  
Asymmetric Effects ◽  
Long Run ◽  
National Analysis ◽  
The Military ◽  
International Threat

Do considerations that cause military spending increases symmetrically cause spending cuts? Models of military spending that estimate a single effect for major independent variables implicitly assume that this is the case. In reality, the mechanisms that cause military spending increases do not always imply symmetrical cuts, and vice versa. This article examines two considerations widely held to influence military spending: economic growth and international threats. In both cases, there are reasons to suspect asymmetric effects on military spending. While recessions always create pressure for cuts in military spending, which frequently constitutes a substantial share of national budgets, economic growth does not necessarily imply a symmetric need for spending increases. Similarly, while national security policymakers, including the military, are likely to call for spending increases when international threats worsen, they have self-interested reasons to minimize the budgetary implications of declining threats. A cross-national analysis of military spending since World War II shows that economic decline has a larger impact on military spending than economic growth. In regards to international threat, the findings are more complex. There is no evidence that international threat is related to changes in military spending in the short run, and little evidence of a long-run relationship. The threat variables appear to account for cross-sectional variation in military spending but not variation within each state over time. These results suggest military budgets require more time to recover from economic decline than benefit from economic growth as recessions can thus produce long deviations from the equilibrium relationship between the size of the economy and the military budget. This finding in military spending suggests consequences for our understanding of balance of power and power transitions.

scholarly journals Testing the Validity of Keynesian Military Model of Fiscal Side in Case of Pakistan

2020 ◽  
Vol 6 (3) ◽  
pp. 675-686
Author(s):  
Ahmed Gulzar ◽  
Allah Ditta ◽  
Hafeez ur Rehman ◽  
Naghmana Ghafoor
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Series Data ◽  
Growth Time ◽  
Gdp Growth ◽  
Development Indicators ◽  
Long Run ◽  
Short Run ◽  
Military Expenditures ◽  
The Impact

The objective of the study was to determine the impact of national security expenditures (military expenditures) on economic growth. Time series data from 1981 to 2018 on annual frequency on GDP growth rate, military expenditures as percentage of GDP, imports as percentage of GDP, unemployment rate, FDI as percentage of GDP and percentage of population living in agglomeration cities taken from online World Development Indicators. Johansen Co-integration and VECM methodology are applied to check the long run relationship and to get the long run and short run coefficient values. The major findings of this study explain that there is found the positive and significant relationship between military expenditures and economic growth of Pakistan both in long run and in short run. It explains that military expenditures are the key driver of economic growth both in short run and in the long run. The impact of imports on GDP growth was also found to be positive and significant both in long run and in short run. The impact of FDI is found positive and significant both in the long run and in the short run. The impact of migration of population to agglomeration cities have huge impact on growth were observed. The impact of unemployment was found to be negative on economic growth in short run.

scholarly journals The Impact of Military Expenditures on Economic Growth of Pakistan

2018 ◽  
Vol 5 (2) ◽  
pp. 41 ◽  
Author(s):  
Muhammad Ajmair ◽  
Khadim Hussain ◽  
Faisal Azeem Abbassi ◽  
Misbah Gohar
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Correction Term ◽  
Military Expenditure ◽  
Series Data ◽  
Gdp Growth ◽  
Long Run ◽  
Short Run ◽  
Military Expenditures ◽  
The Impact

The purpose of this research paper is to examine the long run relationship between military expenditure, number of persons in military and economic growth. To fulfill this, the study used ARDL approach for annual time series data from 1990 to 2015. The results show that Pakistan military expenditures are insignificant (military burden for the country is statically insignificant) and number of persons in military are positively and significantly related with GDP growth in long run. The error correction term is negative and significant which shows that short run relationship exists among economic growth, military expenditures and number of army persons. In short run military expenditure and number of persons in military are positively and significantly related with GDP growth but in long run only number of military persons affects economic growth positively and significantly.

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