Military Expenditures and Income Inequality: Evidence from a Panel Analysis

Year 2024, Volume: 8 Issue: 3, 1085 - 1099

Alper Sönmez , Abdoulkader Sidi Ousmane Gandou

Abstract

Security is an essential need that must be ensured by any sovereign state. Military expenditures for security occupy an essential place in the budget of the states and even in the GDP. According to World Bank (2020a) statistics, average military expenditures of the countries within the government expenditures have continued to decrease since 2006, while as a share of GDP, it decreases almost steadily since 1985. Those decreases can be interpreted as signs of a relatively peaceful world. The decrease in military expenditures implies more resources for other economic sectors and also implies an increase in income equality within a country. Using a panel regression for country-level observations and the Gini index as a proxy for income inequality, this study aims to determine the impact of military expenditures on income inequality in fifty-two countries (including 28 NATO and 36 OECD member countries) over the period 2001-2019. The empirical key findings of the study can be summarized as follows: The military expenditures, consistent with the literature, increase significantly income inequality, and the findings even reveal that this situation is valid in developed countries. Moreover, the findings show that neither being a member of the NATO alliance nor governance effectiveness significantly impact the income inequality.

Keywords

Military Expenditures, Gini Index, Income Inequality, NATO, OECD

Askeri Harcamalar ve Gelir Eşitsizliği: Bir Panel Analizden Kanıtlar

Abstract

Güvenlik her egemen devletin sağlaması gereken temel bir ihtiyaçtır. Güvenlik amaçlı yapılan askeri harcamalar, devletlerin bütçelerinde ve GSYİH içerisinde önemli bir yer tutmaktadır. Dünya Bankası (2020a) istatistiklerine göre, ülkelerin kamu harcamaları içerisinde ortalama askeri harcamalarının payı 2006 yılından bu yana azalmaya devam ederken, GSYİH’ye oranı da 1985 yılından günümüze neredeyse istikrarlı bir şekilde azalmaktadır. Bu azalışlar nispeten barışçıl bir dünyanın işaretleri olarak yorumlanabilir. Askeri harcamaların azalması, diğer ekonomik sektörlere daha fazla kaynak sağlanması anlamına geldiği gibi, ülke içerisinde gelir eşitliğinin de artması anlamına gelmektedir. Ülke düzeyinde gözlemler için panel regresyon analizi ve gelir eşitsizliğinin bir göstergesi olarak Gini endeksini kullanan bu çalışma, 2001-2019 yıllar arasında elli iki ülke için (28 NATO ve 36 OECD üyesi ülke dahil) askeri harcamaların gelir eşitsizliği üzerindeki etkisini belirlemeyi amaçlamaktadır. Çalışmanın ampirik temel bulguları şu şekilde özetlenebilir: Literatürle tutarlı olarak askeri harcamalar gelir eşitsizliğini önemli ölçüde artırmakta, hatta bulgular bu durumun gelişmiş ülkelerde de geçerli olduğunu ortaya koymaktadır. Ayrıca bulgular ne NATO ittifakına üye olmanın ne de yönetişim etkinliğinin gelir eşitsizliğini önemli ölçüde etkilemediğini göstermektedir.

Keywords

Askeri Harcamalar, Gini Endeksi, Gelir Eşitsizliği, NATO, OECD

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