scholarly journals Relations Between Military Spending and Economic Growth in Turkey (1980-2016)

2018 ◽  
Author(s):  
Dilek Özdemir ◽  
Cevat Gerni ◽  
Ahmet Fatih Aydemir ◽  
Ömer Selçuk Emsen
Keyword(s):  
Economic Growth ◽  
Growth Model ◽  
Negative Impact ◽  
National Income ◽  
Military Spending ◽  
Military Expenditure ◽  
Solow Growth Model ◽  
Negative Effect ◽  
Military Expenditures ◽  
Basic Argument

It cannot be said that military expenditure and economic growth relationship have reached a consensus both theoretically and empirically. The basic argument of the claim that military spending will increase national income is that if the economy is unemployed, the increase in spending, including military spending, will increase national income by expanding demand. Whereas, the argument that military spending will have a negative impact on the national income is claimed due to causing the inefficiency of the resources in the economy and thus to suppress the growth by causing resource mobility from productive sectors to the non-productive sectors. On the purpose of determining which of these two opposing ideas whether committed in Turkey’s economy, military expenditures have been added to Solow growth model and econometric analyzes have involved the period of 1980-2016. In the light of findings, it is revealed that second type of hypothesis is valid that military spending has a negative effect on economic growth.

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.

scholarly journals The Asymmetric Relationship Between Military Expenditure, Economic Growth and Industrial Productivity: An Empirical Analysis of India, China and Pakistan Via the NARDL Approach

2021 ◽  
Vol 13 (1) ◽  
Author(s):  
Aamir Syed
Keyword(s):  
Economic Growth ◽  
Negative Impact ◽  
Positive Impact ◽  
Research Work ◽  
Military Expenditure ◽  
Economic Policies ◽  
Long Run ◽  
Negative Effect ◽  
Short Run ◽  
Industrial Productivity

This research work aims to verify how military expenditure promotes economic growth and industrial productivity, as suggested by the Military Keynesianism postulate. The NARDL method is employed to achieve the above objective on the panel data of India, China, and Pakistan, covering the period between 1990 and 2018. The study finds that the positive and negative impact of military expenditure has a significant positive and negative effect on economic growth in the long run for China and India; however, in the short-run, only positive impact favors economic growth. Thus, there is a symmetric effect in the short-run and an asymmetric impact in the long-run. This asymmetric result supports the work of Military Keynesianism, helping policymakers in devising appropriate macro-economic policies.

Military Spending and Economic Growth in An Augmented Solow Model: A Panel Data Investigation for OECD Countries

2014 ◽  
Vol 20 (3) ◽  
pp. 395-409 ◽  
Author(s):  
Na Hou ◽  
Bo Chen
Keyword(s):  
Economic Growth ◽  
Oecd Countries ◽  
Military Expenditure ◽  
Economic Effects ◽  
Panel Estimation ◽  
Solow Model ◽  
Solow Growth Model ◽  
Negative Effect ◽  
Controversial Area ◽  
Data Investigation

AbstractThe defence-growth nexus has been investigated by many studies and has always been a controversial area of research. By applying an Augmented Solow Growth Model integrated with a military burden variable, this paper examines the effect of military expenditure on economic growth for 21 OECD countries during the period 1960–2009. Different panel estimation methodologies are used to analyze the economic effects of military expenditure. The empirical results suggest that military expenditure would appear to have a negative effect on growth.

scholarly journals The Dynamic Relationship between Inequality and Sustainable Economic Growth

2020 ◽  
Vol 12 (14) ◽  
pp. 5740 ◽  
Author(s):  
Hwan-Joo Seo ◽  
HanSung Kim ◽  
Young Soo Lee
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Income Inequality ◽  
Growth Model ◽  
Capital Accumulation ◽  
Negative Impact ◽  
Positive Impact ◽  
Dynamic Relationship ◽  
Negative Effect ◽  
Sustainable Economic Growth

This study empirically tests the effects of income inequality on growth for 43 countries from 1991 to 2014 based on a cumulative growth model. The results show that, first, the estimation results using a reduced equation reveal a positive correlation between the income inequalities of lagging countries and the respective growth gaps with the frontier country. This confirms that the increase in income inequality negatively affects growth. Secondly, a cumulative growth model using 3SLS estimation shows that income inequality has a negative effect only on investment. However, we fail to find correlations between technological innovation and income inequality and between human capital accumulation and income inequality. Considering that investment has a positive impact on productivity, we conclude that income inequality has a negative impact on investment and that the resulting sluggish investment has a negative impact on productivity, which in turn negatively influences growth. Third, contrary to Kaldor and Barro’s prediction, we find that income inequality in developing countries is negatively correlated with growth, particularly for investment. The effects of income inequality on investment are found to be similar in both developed and developing countries. We also find region-specific differences in the paths through which income inequality affects sustainable economic growth.

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.

The Impact of Military Spending on Economic Development

2018 ◽  
pp. 182-191
Author(s):  
Saptarshi Chakraborty
Keyword(s):  
Economic Growth ◽  
Causal Effect ◽  
Large Fraction ◽  
Military Spending ◽  
Military Expenditure ◽  
Policy Debate ◽  
External Threats ◽  
The Cost ◽  
The Military ◽  
The Impact

Some countries spend a relatively large percentage of GDP on their militaries in order to preserve or secure their status as global powers. Others do so because they are ruled by military governments or aggressive regimes that pose a military threat to their neighbors or their own populations. It is debatable whether there is a causal relationship between military spending and economic growth in the economy. It is again a policy debate how much to allocate funds for civilian and how much for military expenditure. Under these puzzling results of the impact of military expenditure on economic growth which is frequently found to be non-significant or negative, yet most countries spend a large fraction of their GDP on defense and the military. The chapter tries to investigate the relationship between military spending and economic growth in India. It also sees whether external threats, corruption, and other relevant controls have any causal effect. This chapter obtains that additional expenditure on Indian military in the presence of additional threat is significantly detrimental to growth implying that India cannot afford to fight or demonstrate power at the cost of its development.

scholarly journals New Evidence for Romania Regarding Dynamic Causality between Military Expenditure and Sustainable Economic Growth

2020 ◽  
Vol 12 (12) ◽  
pp. 5053 ◽  
Author(s):  
Ran Tao ◽  
Oana Ramona Glonț ◽  
Zheng-Zheng Li ◽  
Oana Ramona Lobonț ◽  
Adina Alexandra Guzun
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Structural Changes ◽  
Private Investment ◽  
Military Spending ◽  
Military Expenditure ◽  
Crowding Out ◽  
Annual Growth Rate ◽  
Sustainable Economic Development ◽  
Sustainable Economic Growth

Military spending and sustainable economic development have been widely discussed in recent decades. Especially in Romania, the defense budget is valued at $4.8 billion, registering a compound annual growth rate (CAGR) of 23.57%. It is also expected to reach $7.6 billion in 2023, according to a report by Strategic Defense Intelligence. There is no consensus in current research and less attention is paid to Eastern European countries. Considering the significant increase in military spending in Romania in recent years, as well as the occurrence of political events, this paper focuses on the dynamic causal relationship between military spending and sustainable economic growth in Romania. The bootstrap rolling window causality test takes into account the structural changes, and therefore, provides more convincing results. The results indicate negative effects of military expenditure on sustainable economic growth between 1996–1999 and 2002–2004. It can be attributed to the crowding-out effect of public expenditure on private investment. The positive effect between the two variables analyzed is noticed with the accession of Romania to the North Atlantic Treaty Organization. Conversely, it is found that economic growth does not have a significant effect on military spending in Romania. Policymakers should guard against the crowding out of private consumption and investment due to excessive military spending and ensure to increase military expenditure on the premise of sustainable economic development.

Climate Change, Economic Growth and Growth Determinants: Insights From Vietnam’s Coastal South Central Region

2020 ◽  
pp. 002190962094034
Author(s):  
Hong Hiep Hoang ◽  
Cong Minh Huynh
Keyword(s):  
Climate Change ◽  
Economic Growth ◽  
Growth Model ◽  
Central Region ◽  
Negative Impact ◽  
Generalized Least Squares ◽  
Policy Implications ◽  
Impact Of Climate Change ◽  
South Central ◽  
The Impact

Using the Feasible Generalized Least Squares econometric method, the paper analyzes the impact of climate change on economic growth in Vietnam’s coastal South Central region over the period of 2006–2015. The results indicate that, after controlling for the main determinants in the growth model, the climate change with various proxies has a significantly negative impact on provinces’ economic growth in the region. In particular, local institutions not only increase economic growth, but also reduce the negative impact of climate change on economic growth as well. These results suggest some policy implications aimed at boosting the process of transforming the economic growth model for the coastal region adapting to climate change. JEL codes: F21, F23, E22

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