The Effect of Defense Expenditures and Peace on Economic Growth

2021 ◽  
pp. 518-534
Author(s):  
Mahmut Unsal Sasmaz ◽  
Abdullah Zeybekoglu
Keyword(s):  
Economic Growth ◽  
European Union ◽  
Data Analysis ◽  
Transition Economies ◽  
Positive Relationship ◽  
Panel Data Analysis ◽  
Negative Relationship ◽  
National Income ◽  
Global Public Good ◽  
European Union Countries

Throughout history countries have tried to gain power in order to get advantages for the issues such as providing territorial integrity, social security and internal and external security. As a result of this power-gaining race, defense expenditures had a significant place in countries' economies. In its broad sense, defense expenditures are defined as the share reserved from the national income for the country's defense in order to provide internal and external security of the state and maintain the order and safety of the community. The size of defense expenditures varies from country to country for various reasons. In this study the effect of defense expenditures and peace as a global public good on economic growth was analyzed in 11 European Union countries (transition economies) between 2007 and 2017 with the help of panel data analysis. As a result of the study it was found out that there was a positive relationship between economic growth and defense expenditures. However, a negative relationship was identified between economic growth and peace level.

scholarly journals Relationship between Economic Freedom and Economic Growth in Some Selected Transition Economies: A Panel Data Analysis

2015 ◽  
Author(s):  
Hakan Türkay
Keyword(s):  
Economic Growth ◽  
Data Analysis ◽  
Panel Data ◽  
Transition Economies ◽  
Economic Freedom ◽  
Panel Data Analysis ◽  
Negative Relationship ◽  
Economies In Transition ◽  
Economic Freedom Index ◽  
Fraser Institute

This study estimated the influence of economic freedom in transition economies between the years 2000-2012 on economic growth by using panel data analysis. Economic freedom index developed by Fraser Institute was used in the study. The index values prepared by this institute do not cover all economies in transition. In addition, there is missing data for the periods that the study covers in terms of some countries. Thus, the analysis uses the data about 15 economies in transition. The study was conducted within the scope of two different models. In one of these models, the global economic crisis of 2009 was also included. As a conclusion, a negative relationship was found between economic freedom and economic growth when the crisis was not included; however, there was a positive but statistically insignificant relationship when the crisis was taken into consideration.

scholarly journals Corruption, Shadow Economy and Economic Growth: An Empirical Survey Across the European Union Countries

2017 ◽  
Vol 27 (2) ◽  
pp. 19-32 ◽  
Author(s):  
Sorin Nicolae Borlea ◽  
Monica Violeta Achim ◽  
Monica Gabriela A. Miron
Keyword(s):  
Economic Growth ◽  
European Union ◽  
Economic Development ◽  
Positive Relationship ◽  
Shadow Economy ◽  
Negative Relationship ◽  
The European Union ◽  
Empirical Survey ◽  
European Union Countries

Abstract This study was carried out to empirically investigate the relationships between corruption and shadow economy among the European Union countries, over the period 2005-2014. Moreover, since one would expect corruption and shadow economy to be more common in poorer countries, this study was therefore carried out to determine how corruption and shadow economy affect economic development. The empirical findings of this study confirm a high and positive relationship between corruption and shadow economy, therefore a higher level of corruption involves a higher level of shadow economy. Regarding the influence of corruption and shadow economy on economic growth, a high and negative relationship was found. This means that increasing corruption and shadow economy negatively affects economic growth.

scholarly journals Investigating the Link Between Macroeconomic Factors and Income Inequality of Asian Countries

2021 ◽  
Vol 3 (3) ◽  
Author(s):  
Ameenullah Aman ◽  
Usman Ahmad ◽  
Sumera Muhammad Saleem
Keyword(s):  
Economic Growth ◽  
Data Analysis ◽  
Income Inequality ◽  
Positive Relationship ◽  
Panel Data Analysis ◽  
Negative Relationship ◽  
Asian Countries ◽  
Macroeconomic Factors ◽  
Sample Data ◽  
The Impact

The main purpose of the study was to analyze the impact of macroeconomic factors on income inequality. The panel data analysis is conducted on the sample data of 36 Asian countries. The data of 19 years from the period 2001 to 2019 is collected to analyze the impact of interest rate, economic growth, FDI and exports. The findings revealed the positive relationship between income inequality and economic growth whereas FDI and exports have negative relationship with income inequality. Result of the study implies that authorities should pay special attention to design policies that encourage inward FDI and increase exports.

Financial Development and Economic Growth

2015 ◽  
pp. 233-245
Author(s):  
Filiz Eryılmaz ◽  
Hasan Bakır ◽  
Mehmet Mercan
Keyword(s):  
Economic Growth ◽  
Data Analysis ◽  
New Zealand ◽  
Financial Development ◽  
Positive Relationship ◽  
Panel Data Analysis ◽  
Annual Data ◽  
The Subject ◽  
The Relationship

The relationship between financial development and economic growth has been the subject of considerable debate in development and growth literature. Therefore this chapter provides evidence on the role of financial development in accounting for economic growth in 23 OECD countries (Italy, Japan, Luxemburg, Holland, New Zealand, Norway, Portugal, Spain, Sweden, Switzerland, England, USA, Australia, Austria, Belgium, Canada, Denmark, Finland, Turkey, France, Germany, Greece, Iceland) via panel data analysis using the annual data for the period 1980-2012. The authors find a positive relationship between financial development and economic growth for all countries. Also this result means that financial development leads economic growth in these countries. So the results may help policymakers formulate effective financial sector policies as a tool to promote economic growth.

scholarly journals Greenfield and Brownfield Investments and Economic Growth: Evidence from Central and Eastern European Union Countries

2017 ◽  
Vol 63 (3) ◽  
pp. 19-26 ◽  
Author(s):  
Yilmaz Bayar
Keyword(s):  
Economic Growth ◽  
European Union ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Panel Data Analysis ◽  
Positive Influence ◽  
Eastern European ◽  
Greenfield Investments ◽  
European Union Countries ◽  
National Economies

AbstractGlobal foreign direct investment flows in terms of greenfield and brownfield investments have increased during the recent three decades resulting from the accelerating globalization. The considerable increases in the flows of foreign direct investment have many eventualities for the national economies. This study investigates the mutual effects among greenfield and brownfield (mergers and acquisitions) investments and economic growth in Central and Eastern European Union countries during the 2003–2015 period employing panel data analysis. The findings revealed that both greenfield and brownfield investments had positive influence on the economic growth, but the influence of greenfield investments was found to be relatively higher. Furthermore, one-way causality was discovered from both greenfield and brownfield investments to the economic growth.

scholarly journals DETERMINASI PERTUMBUHAN EKONOMI DI TUJUH NEGARA ASEAN PERIODE TAHUN 1996-2013

Media Ekonomi ◽  
2015 ◽  
Vol 23 (2) ◽  
pp. 107
Author(s):  
Desyana Eka Pramasty ◽  
Lydia Rosintan
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Data Analysis ◽  
Panel Data ◽  
Direct Investment ◽  
Panel Data Analysis ◽  
Foreign Debt ◽  
National Income ◽  
Negative Effect ◽  
Asean Countries

<p><em>Economic growth is also one of the most important indicators</em><em> </em><em>in determining the standard of living of people in a country, because of an increase in the production capacity of an economy that is manifested in the form of national income. Economic growth is an indication of the success of economic development, measured by comparing, for example, for domestic size, Gross Domestic Product (GDP) in the current year with the previous year. This study aimed to analyze the factors that affect economic growth in seven ASEAN countries period from 1996-2013. This study use panel data analysis. The factors that affect economic growth in seven ASEAN countries, namely foreign debt, foreign direct investment, and the rate of inflation. Based on panel data analysis of the results showed that the foreign debt has negative effect and significant on economic growth, foreign direct investment has positive effect and significant on economic growth and inflation rate has negative effect and significant on economic growth in seven ASEAN countries period from 1996-2013.</em></p>

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