The Impact of Defence Expenditures on Government Debt, Budget Deficit, and Current Account Deficit: Evidence from Developed and Developing Countries

Abstract

Although there are many studies on the effect of defence expenditures, which have a significant share in government expenditures, on various macroeconomic variables, there are very few studies on their effects on government debt, budget deficit and current account deficit. In this paper, the effect of defence expenditures on government debt, budget deficit, and current account deficit is empirically analyzed by system GMM analysis employing annual data from 16 developed and 9 developing countries for the period 2000-2019. The findings of the paper show that defence expenditures are important factor to determine government debt, budget deficit and current account deficit.

Keywords

• Defence expenditures
• government debt
• budget deficit
• current account deficit
• System GMM Analysis

Savunma Harcamalarının Kamu Borcu, Bütçe Açığı ve Cari Açık Üzerindeki Etkisi: Gelişmiş ve Gelişmekte Olan Ülkelerden Bulgular

Abstract

Kamu harcamaları içinde önemli bir paya sahip olan savunma harcamalarının çeşitli makroekonomik değişkenler üzerindeki etkisine ilişkin çok sayıda çalışma olmasına rağmen, kamu borcu, bütçe açığı ve cari işlemler açığı üzerindeki etkilerine ilişkin çok az çalışma bulunmaktadır. Bu çalışmada, 2000-2019 dönemi için 16 gelişmiş ve 9 gelişmekte olan ülkeden yıllık veriler kullanılarak sistem GMM analiziyle, savunma harcamalarının kamu borcu, bütçe açığı ve cari işlemler açığı üzerindeki etkisi ampirik olarak analiz edilmiştir. Çalışmanın bulguları, savunma harcamalarının kamu borcunu, bütçe açığını ve cari işlemler açığını belirlemede önemli bir faktör olduğunu göstermektedir.

Keywords

• Savunma harcamaları
• kamu borcu
• bütçe açığı
• cari açık
• Sistem GMM Analizi

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