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Savunma harcamalarının ekonomik performans üzerine etkisi: Bootstrap VZA yaklaşımı

Year 2022, Volume: 36 Issue: 4, 325 - 335, 15.10.2022

Abstract

Bu çalışma, savunma harcamalarının ekonomik performans üzerindeki etkisinin belirlenmesi gibi kritik bir konuyu araştırmayı amaçlamaktadır. Araştırmada ekonomik performans ve savunma harcamaları arasındaki ilişki Amerika, Asya-Okyanusya ve Avrupa bölgelerindeki dağılımlarına göre Ekonomik Kalkınma ve İşbirliği Örgütü (OECD) üyesi 32 ülke için 1993-2019 dönemi verileriyle ele alınmıştır. Analizler savunma harcamalarının dahil edildiği ve edilmediği iki durumu inceleyen Bootstrap Etkinlik ve Malmquist Toplam Faktör Verimliliği Endeksi (MVE) hesaplamalarına dayalı olarak gerçekleştirilmiştir. Elde edilen bulgular, savunma harcamalarının dahil edilerek hesaplanan ekonomik performans değerlerinin savunma harcamaları dahil edilmeden hesaplanan performans değerlerinden daha yüksek olduğunu göstermektedir. Bu açıdan bulgular, savunma harcamalarının ekonomik performansı pozitif yönlü etkilediğini savunan Keynesyen Yaklaşıma uygundur. Ayrıca sonuçlar, Amerika ve Avrupa bölgelerinin Asya-Okyanusya bölgesine nazaran daha yüksek performans değerlerine sahip olduğunu göstermiştir. Bu yönüyle savunma harcamalarının bölgesel olarak değerlendirilmesi gerekliliği dikkat çekmektedir.

References

  • Abdel-Khalek, G., Mazloum, M. G., & El Zeiny, M. R. M. (2020). Military expenditure and economic growth: The case of India. Review of Eco- nomics and Political Science, 5(2), 116–135. [CrossRef]
  • Ajmair, M., Hussaın, K., Abbassi, F. A., & Gohar, M. (2018). The impact of military expenditures on economic growth of Pakistan. Applied Eco- nomics and Finance, 5(2), 41–48. [CrossRef]
  • Alexander, W. R. J. (1990). The impact of defence spending on economic growth: A multi-sectoral approach to defence spending and eco- nomic growth with evidence from developed economies. Defence Economics, 2(1), 39–55. [CrossRef]
  • Antonakis, N. (1997). Military expenditure and economic growth in Greece, 1960–90. Journal of Peace Research, 34(1), 89–100. [CrossRef]
  • Arshad, A., Syed, S. H., & Shabbir, G. (2017). Military expenditure and eco- nomic growth: A panel data analysis. Forman Journal of Economic Studies, 13, 161–175.
  • Ateşoğlu, H. S. (2002). Defense spending promotes aggregate output in the United States- evidence from Cointegration analysis. Defence and Peace Economics, 13(1), 55–60. [CrossRef]
  • Benoit, E. (1973). Defense spending and economic growth in developing countries. Lexington Books.
  • Benoit, E. (1978). Growth and defense in developing countries. Economic Development and Cultural Change, 26(2), 271–280. [CrossRef]
  • Caves, D. W., Christensen, L. R., & Diewert, W. E. (1982). The economic theory of index numbers and the measurement of input, output, and productivity. Econometrica, 50(6), 1393–1414. [CrossRef]
  • Chowdhury, A. R. (1991). A casual analysis of defense spending and economic growth. Journal of Conflict Resolution, 35(1), 80–97. [CrossRef]
  • Dakurah, A. H., Davies, S. P., & Sampath, R. K. (2001). Defense spending and economic growth in developing countries. Journal of Policy Modeling, 23(6), 651–658. [CrossRef]
  • Değer, S. (1986). Economic development and defense expenditure. Economic Development and Cultural Change, 35(1), 179–196. [CrossRef]
  • Dongming, Z., & Siqi, L. (2014). The impact of defense expenditure on eco- nomic productivity in APEC countries. Review of the Air Force Acad- emy, 1, 109.
  • Dunne, P., Nikolaidou, E., & Vougas, D. (2001). Defence spending and eco- nomic growth: A causal analysis for Greece and Turkey. Defence and Peace Economics, 12(1), 5–26. [CrossRef]
  • Efron, B. (1979). Computers and the theory of statistics: Thinking the unthinkable. SIAM Review, 21(4), 460–480. [CrossRef]
  • Efron, B., & Tibshirani, R. J. (1994). An introduction to the bootstrap. Boca Raton: CRC Press.
  • Farrell, M. J. (1957). The measurement of productive efficiency. Journal of the Royal Statistical Society. Series A, 120(3), 253–281. [CrossRef]
  • Feridun, M., Sawhney, B., & Shahbaz, M. (2011). The impact of military spending on economic growth: The case of North Cyprus. Defence and Peace Economics, 22(5), 555–562. [CrossRef]
  • Ferrier, G. D., & Hirschberg, J. G. (1997). Bootstrapping confidence intervals for linear programming efficiency scores: With an illustration using Italian banking data. Journal of Productivity Analysis, 8(1), 19–33. [CrossRef] Galvin, H. (2003). The impact of defence spending on the economic growth of developing countries: A cross-section study. Defence and Peace Economics, 14(1), 51–59. [CrossRef]
  • Horngren, T. C., Foster, G., & Datar, M. S. (2000). Cost accounting a managerial emphasis (10th ed.). London: Prentice Hall Interna- tional, Inc.
  • Hou, N., & Chen, B. (2013). Military expenditure and economic growth in developing countries: Evidence from system GMM estimates. Defence and Peace Economics, 24(3), 183–193. [CrossRef]
  • Looney, R. E. (1994). The economics of third world defence expenditures. London: Jai Press.
  • Knight, M., Loayza, N., & Villanueva, D. (1996). The peace dividend: military spending cuts and economic growth. IMF Staff Papers, 1–44.
  • Malmquist, S. (1953). Index numbers and indifference surfaces. Trabajos de Estadistica, 4(2), 209–242. [CrossRef]
  • Mao, W., & Koo, W. W. (1997). Productivity growth, technological progress, and efficiency change in chinese agriculture after rural economic reforms: A DEA approach. China Economic Review, 8(2), 157–174. [CrossRef]
  • Mohanty, R. K., Panda, S., & Bhuyan, B. (2020). Does defence spending and its composition affect economic growth in India? Margin: The Journal of Applied Economic Research, 14(1), 62–85. [CrossRef]
  • Nadiri, M. I. (1970). Some approaches to the theory and measurement of total factor productivity: A survey. Journal of Economic Literature, 8(4), 1137–1177.
  • Öncü, S., & Aktaş, R. (2007). Productivity change in Turkish banking sector restructuring period. Journal of Yönetim ve Ekonomi, Celal Bayar University, 14, 247–266.
  • Raju, M. H., & Ahmed, Z. (2019). Effect of military expenditure on economic growth: Evidences from India Pakistan and China using Cointegration and causality analysis. Asian Journal of German and European Studies, 4(1), 1–8. [CrossRef]
  • Ramanathan, R. (2003). An introduction to data envelopment analysis: A tool for performance measurement. New Delhi: Sage Publications.
  • Raza, S. A., Shahbaz, M., & Paramati, S. R. (2017). Dynamics of military expenditure and income inequality in Pakistan. Social Indicators Research, 131(3), 1035–1055. [CrossRef]
  • Simar, L., & Wilson, P. W. (2008). “Statistical inference in nonparametric frontier models: recent developments and perspectives”. The Measurement of Productive Efficiency and Productivity Change. Oxford Scholarship Online, 421–521. Simar, L., & Wilson, P. W. (1998). Sensitivity analysis of efficiency scores: How to bootstrap in nonparametric frontier models. Management Science, 44(1), 49–61. [CrossRef]
  • Simar, L., & Wilson, P. W. (1999). Estimating and bootstrapping Malmquist indices. European Journal of Operational Research, 115(3), 459–471. [CrossRef]
  • Simar, L., & Wilson, P. W. (2000a). A general methodology for bootstrap- ping in nonparametric frontier models. Journal of Applied Statistics, 27(6), 779–802. [CrossRef]
  • Simar, L., & Wilson, P. W. (2000b). Statistical inference in nonparametric frontier models: The state of the art. Journal of Productivity Analysis, 13(1), 49–78. [CrossRef]
  • SIPRI Military Expenditure Database. Data for OECD Countries 1993 -2019. https://www.sipri.org/databases/milex (Access Date: September 15, 2021).
  • Smeekes, S. (2009). Bootstrapping Nonstationary Time Series. Universitaire Pers Maastricht (Access Date: September 15, 2021).
  • Sturm, J., & Williams, B. D. (2002). Entry of foreign banks and bank efficiency in Australia. CESifo Working Paper, No.: 816.
  • Tone, K. (2004). Malmquist productivity index, handbook on data envelopment analysis (pp. 203–227). US: Springer.
  • Torun, M., Eroğlu, E., & Bayrak, R. (2021). Savunma Harcamalarının Ekonomik Büyümeye Etkisi: NATO Ülkeleri üzerinde Panel Veri Analizi. Yönetim Bilimleri Dergisi, 19(40), 489–507. [CrossRef]
  • Vitali, F. (2018). The role of military expenditures on economic growth in Italy. Journal of Economics Bibliography, 5(3), 175–180.
  • Wang, T. P., Shyu, S. H. P., & Chou, H. C. (2012). The impact of defense expenditure on economic productivity in OECD countries. Economic Modelling, 29(6), 2104–2114. [CrossRef]
  • Wıjeweera, A., & Webb, M. J. (2011). Military spending and economic growth in South Asia: A Panel data analysis. Defence and Peace Economics, 22(5), 545–554. [CrossRef]
  • Yakovlev, P. (2007). Arms trade, military spending and economic growth. Defence and Peace Economics, 18(4), 317–338. [CrossRef]
  • Yükçü, S., & Atağan, G. (2009). Etkinlik, etkililik ve verimlilik kavramlarının yarattığı karışıklık. Atatürk Üniversitesi İktisadi ve İdari Bilimler Dergisi, 23(4), 1–13.
  • Yun, Y. B., Nakayama, H., & Tanino, T. (2004). A generalized model for data envelopment analysis. European Journal of Operational Research, 157(1), 87–105. [CrossRef]

The impact of defense expenditure on economic performance: A Bootstrap DEA approach

Year 2022, Volume: 36 Issue: 4, 325 - 335, 15.10.2022

Abstract

This study aims to investigate the critical issue in determining the effect of defense expenditures on economic performance. In this research, the relationship between economic performance and defense expenditures is discussed using the data from the period 1993 to 2019 for 32 countries that are members of the Organization for Economic Cooperation and Development, according to their distribution in America, Asia–Oceania, and Europe. The analyses are based on the Bootstrap Effectiveness and Malmquist Total Factor Productivity Index calculations, which examine two cases with and without defense expenditure. The findings show that the economic performance values calculated by including defense expenditures are higher than the performance values calculated without defense expenditures. In this respect, the findings are in line with the Keynesian Approach, which argues that defense expenditures positively affect economic performance. In addition, the result showed that America and Europe regions have higher performance values than Asia–Oceania region. In this respect, it draws attention that defense expenditures should be evaluated regionally.

References

  • Abdel-Khalek, G., Mazloum, M. G., & El Zeiny, M. R. M. (2020). Military expenditure and economic growth: The case of India. Review of Eco- nomics and Political Science, 5(2), 116–135. [CrossRef]
  • Ajmair, M., Hussaın, K., Abbassi, F. A., & Gohar, M. (2018). The impact of military expenditures on economic growth of Pakistan. Applied Eco- nomics and Finance, 5(2), 41–48. [CrossRef]
  • Alexander, W. R. J. (1990). The impact of defence spending on economic growth: A multi-sectoral approach to defence spending and eco- nomic growth with evidence from developed economies. Defence Economics, 2(1), 39–55. [CrossRef]
  • Antonakis, N. (1997). Military expenditure and economic growth in Greece, 1960–90. Journal of Peace Research, 34(1), 89–100. [CrossRef]
  • Arshad, A., Syed, S. H., & Shabbir, G. (2017). Military expenditure and eco- nomic growth: A panel data analysis. Forman Journal of Economic Studies, 13, 161–175.
  • Ateşoğlu, H. S. (2002). Defense spending promotes aggregate output in the United States- evidence from Cointegration analysis. Defence and Peace Economics, 13(1), 55–60. [CrossRef]
  • Benoit, E. (1973). Defense spending and economic growth in developing countries. Lexington Books.
  • Benoit, E. (1978). Growth and defense in developing countries. Economic Development and Cultural Change, 26(2), 271–280. [CrossRef]
  • Caves, D. W., Christensen, L. R., & Diewert, W. E. (1982). The economic theory of index numbers and the measurement of input, output, and productivity. Econometrica, 50(6), 1393–1414. [CrossRef]
  • Chowdhury, A. R. (1991). A casual analysis of defense spending and economic growth. Journal of Conflict Resolution, 35(1), 80–97. [CrossRef]
  • Dakurah, A. H., Davies, S. P., & Sampath, R. K. (2001). Defense spending and economic growth in developing countries. Journal of Policy Modeling, 23(6), 651–658. [CrossRef]
  • Değer, S. (1986). Economic development and defense expenditure. Economic Development and Cultural Change, 35(1), 179–196. [CrossRef]
  • Dongming, Z., & Siqi, L. (2014). The impact of defense expenditure on eco- nomic productivity in APEC countries. Review of the Air Force Acad- emy, 1, 109.
  • Dunne, P., Nikolaidou, E., & Vougas, D. (2001). Defence spending and eco- nomic growth: A causal analysis for Greece and Turkey. Defence and Peace Economics, 12(1), 5–26. [CrossRef]
  • Efron, B. (1979). Computers and the theory of statistics: Thinking the unthinkable. SIAM Review, 21(4), 460–480. [CrossRef]
  • Efron, B., & Tibshirani, R. J. (1994). An introduction to the bootstrap. Boca Raton: CRC Press.
  • Farrell, M. J. (1957). The measurement of productive efficiency. Journal of the Royal Statistical Society. Series A, 120(3), 253–281. [CrossRef]
  • Feridun, M., Sawhney, B., & Shahbaz, M. (2011). The impact of military spending on economic growth: The case of North Cyprus. Defence and Peace Economics, 22(5), 555–562. [CrossRef]
  • Ferrier, G. D., & Hirschberg, J. G. (1997). Bootstrapping confidence intervals for linear programming efficiency scores: With an illustration using Italian banking data. Journal of Productivity Analysis, 8(1), 19–33. [CrossRef] Galvin, H. (2003). The impact of defence spending on the economic growth of developing countries: A cross-section study. Defence and Peace Economics, 14(1), 51–59. [CrossRef]
  • Horngren, T. C., Foster, G., & Datar, M. S. (2000). Cost accounting a managerial emphasis (10th ed.). London: Prentice Hall Interna- tional, Inc.
  • Hou, N., & Chen, B. (2013). Military expenditure and economic growth in developing countries: Evidence from system GMM estimates. Defence and Peace Economics, 24(3), 183–193. [CrossRef]
  • Looney, R. E. (1994). The economics of third world defence expenditures. London: Jai Press.
  • Knight, M., Loayza, N., & Villanueva, D. (1996). The peace dividend: military spending cuts and economic growth. IMF Staff Papers, 1–44.
  • Malmquist, S. (1953). Index numbers and indifference surfaces. Trabajos de Estadistica, 4(2), 209–242. [CrossRef]
  • Mao, W., & Koo, W. W. (1997). Productivity growth, technological progress, and efficiency change in chinese agriculture after rural economic reforms: A DEA approach. China Economic Review, 8(2), 157–174. [CrossRef]
  • Mohanty, R. K., Panda, S., & Bhuyan, B. (2020). Does defence spending and its composition affect economic growth in India? Margin: The Journal of Applied Economic Research, 14(1), 62–85. [CrossRef]
  • Nadiri, M. I. (1970). Some approaches to the theory and measurement of total factor productivity: A survey. Journal of Economic Literature, 8(4), 1137–1177.
  • Öncü, S., & Aktaş, R. (2007). Productivity change in Turkish banking sector restructuring period. Journal of Yönetim ve Ekonomi, Celal Bayar University, 14, 247–266.
  • Raju, M. H., & Ahmed, Z. (2019). Effect of military expenditure on economic growth: Evidences from India Pakistan and China using Cointegration and causality analysis. Asian Journal of German and European Studies, 4(1), 1–8. [CrossRef]
  • Ramanathan, R. (2003). An introduction to data envelopment analysis: A tool for performance measurement. New Delhi: Sage Publications.
  • Raza, S. A., Shahbaz, M., & Paramati, S. R. (2017). Dynamics of military expenditure and income inequality in Pakistan. Social Indicators Research, 131(3), 1035–1055. [CrossRef]
  • Simar, L., & Wilson, P. W. (2008). “Statistical inference in nonparametric frontier models: recent developments and perspectives”. The Measurement of Productive Efficiency and Productivity Change. Oxford Scholarship Online, 421–521. Simar, L., & Wilson, P. W. (1998). Sensitivity analysis of efficiency scores: How to bootstrap in nonparametric frontier models. Management Science, 44(1), 49–61. [CrossRef]
  • Simar, L., & Wilson, P. W. (1999). Estimating and bootstrapping Malmquist indices. European Journal of Operational Research, 115(3), 459–471. [CrossRef]
  • Simar, L., & Wilson, P. W. (2000a). A general methodology for bootstrap- ping in nonparametric frontier models. Journal of Applied Statistics, 27(6), 779–802. [CrossRef]
  • Simar, L., & Wilson, P. W. (2000b). Statistical inference in nonparametric frontier models: The state of the art. Journal of Productivity Analysis, 13(1), 49–78. [CrossRef]
  • SIPRI Military Expenditure Database. Data for OECD Countries 1993 -2019. https://www.sipri.org/databases/milex (Access Date: September 15, 2021).
  • Smeekes, S. (2009). Bootstrapping Nonstationary Time Series. Universitaire Pers Maastricht (Access Date: September 15, 2021).
  • Sturm, J., & Williams, B. D. (2002). Entry of foreign banks and bank efficiency in Australia. CESifo Working Paper, No.: 816.
  • Tone, K. (2004). Malmquist productivity index, handbook on data envelopment analysis (pp. 203–227). US: Springer.
  • Torun, M., Eroğlu, E., & Bayrak, R. (2021). Savunma Harcamalarının Ekonomik Büyümeye Etkisi: NATO Ülkeleri üzerinde Panel Veri Analizi. Yönetim Bilimleri Dergisi, 19(40), 489–507. [CrossRef]
  • Vitali, F. (2018). The role of military expenditures on economic growth in Italy. Journal of Economics Bibliography, 5(3), 175–180.
  • Wang, T. P., Shyu, S. H. P., & Chou, H. C. (2012). The impact of defense expenditure on economic productivity in OECD countries. Economic Modelling, 29(6), 2104–2114. [CrossRef]
  • Wıjeweera, A., & Webb, M. J. (2011). Military spending and economic growth in South Asia: A Panel data analysis. Defence and Peace Economics, 22(5), 545–554. [CrossRef]
  • Yakovlev, P. (2007). Arms trade, military spending and economic growth. Defence and Peace Economics, 18(4), 317–338. [CrossRef]
  • Yükçü, S., & Atağan, G. (2009). Etkinlik, etkililik ve verimlilik kavramlarının yarattığı karışıklık. Atatürk Üniversitesi İktisadi ve İdari Bilimler Dergisi, 23(4), 1–13.
  • Yun, Y. B., Nakayama, H., & Tanino, T. (2004). A generalized model for data envelopment analysis. European Journal of Operational Research, 157(1), 87–105. [CrossRef]
There are 46 citations in total.

Details

Primary Language Turkish
Subjects Economics
Journal Section Research Articles
Authors

Özlem Topçuoğlu This is me 0000-0002-9821-5856

Publication Date October 15, 2022
Published in Issue Year 2022 Volume: 36 Issue: 4

Cite

APA Topçuoğlu, Ö. (2022). Savunma harcamalarının ekonomik performans üzerine etkisi: Bootstrap VZA yaklaşımı. Trends in Business and Economics, 36(4), 325-335.

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