Theoretical and Empirical Literature of The Relationship Between Defense Expenditures and Economic Growth

Yıl 2021, Cilt: 6 Sayı: 2, 208 - 215, 30.06.2021

Bayram Aydın

https://doi.org/10.29106/fesa.858707

Öz

In the economic literature, it is considered that defense expenditure, which is characterized as public spending, can negatively affect economic growth either through crowding out effect of investments within the framework of the Neo-Classical Approach, or positively affect economic growth by increasing aggregate demand within the framework of the Keynesian Approach. Benoit examined the relationship between economic growth and military spending in developing countries in his study in 1973 and he revealed the existence of a positive relationship between variables. This result has been described as the Benoit Hypothesis in the economics literature. Within the framework of the Benoit Hypothesis, the relationship between military spending and economic growth has been the subject of many academic studies. However, the findings obtained in the empirical literature made a difference, and a common conclusion could not be reached about the validity of the hypothesis. In this study, it is aimed to bring together the theoretical and empirical findings regarding the relationship between defense expenditures and economic growth.

Anahtar Kelimeler

Defense Expenditures, Economic Growth, Benoit Hypothesis, Literature Study

Kaynakça

• ABDEL-KHALEK, G., MAZLOUM, M. G. and EL ZEINY, M. R. M. (2019). Military expenditure and economic growth: the case of India. Review of Economics and Political Science, 1-20.
• ALEXANDER, W. R. J. (1990). The Impact of Defence Spending on Economic Growth: A Multi-Sectoral Approach to Defence Spending and Economic Growth with Evidence from Developed Economies. Defence Economics, 2(1), 39-55.
• ALPTEKİN, V. (2012). Benoit Hipotezi: Seçilmiş OECD Ülkeleri Ölçeğinde Panel Veriler Yardımıyla Analizi. Celal Bayar Üniversitesi Sosyal Bilimler Dergisi, 10(2), 204-215.
• BATCHELOR, P., DUNNE, J. P., and SAAL D. S. (2000) Military spending and economic growth in South Africa. Defence and Peace Economics, 11(4), 553-571.
• BENOIT, E. (1973). Defense spending and economic growth in developing countries. Lexington: Lexington Books.
• BENOIT, E. (1978). Growth and Defense Expenditure. Economic Development and Cultural Change, 26(2), 271-280.
• CHOWDHURY, A. (1991), A Causal Analysis of Defense Spending and Economic Growt. The Journal of Conflict Resolution, 35(1), 80-97.
• DAKURAH, A. H., DAVIES, S. P. and SAMPATH, R. K. (2001). Defense spending and economic growth in developing countries A causality analysis. Journal of Policy Modeling, 23, 651-658.
• DESTEK, M. A. and OKUMUŞ, I. (2016). Military Expenditure and Economic Growth in BRICS and MIST Countries: Evidence From Bootstrap Panel Granger Causality Analysis. South-Eastern Europe Journal of Economics, 2, 175-186.
• DRİTSAKIS, N. (2004). Defense Spending and Economic Growth: An Empirical Investigation For Greece and Turkey. Journal of Policy Modelling, 26(2), 249-264.
• DUNNE, J. P. and NIKOLAIDOU, E. (2005). Military Spending and Economic Growth in Greece, Portugal and Spain. Web: https://ideas.repec.org/p/uwe/wpaper/0510.html
• DUNNE, P. and VOUGAS, D. (1999). Military Spending and Economic Growth in South Africa: A Causal Analysis. The Journal of Conflict Resolution, 43(4), 525-536.
• DUYAR, M. and KOÇOĞLU, M. (2014). Askeri Harcamaların Ekonomik Büyüme Üzerine Etkisi; Sahra Altı Afrika Örneği. Uluslararası Sosyal Araştırmalar Dergisi, 7(33), 703-704.
• FARZANEGAN, M. R. (2014) Military Spending and Economic Growth: The Case of Iran. Defence and Peace Economics, 25(3), 247-269.
• FERİDUN, M., SAWHNEY, B. and SHAHBAZ, M. (2011). The Impact of Military Spending on Economic Growth: The Case of North Cyprus. Defence and Peace Economics, 22(5), 555-562.
• GİRAY, F. (2004). Savunma Harcamaları ve Ekonomik Büyüme, Cumhuriyet Üniversitesi İktisadi ve İdari Bilimler Dergisi, 5(1), 181-199.
• JOERDING, W. (1986). Economic Growth and Defense Spending Granger Causality. Journal of Development Economics, 21(1), 35-40.
• KANCA, O. C. and YAMAK, R. (2020). Türkiye Ekonomisi Açısından Benoit Hipotezinin Testi. Gaziantep University Journal of Socıal Sciences, 19(3), 823-839.
• KARAGIANNI, S. and PEMPETZOGLU, M. (2009). Defense Spending and Economic Growth in Turkey: A Linear and Non‐Linear Granger Causality Approach. Defence and Peace Economics, 20(2), 139-148.
• KESGINGOZ, H. and OLCAY, T. (2016). Türkiye ve Seçilmiş Ortadoğu Ülkeleri için Benoit Hipotezinin Sınanması: Panel Veri Analizi. Çankırı Karatekin Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 6(1), 585-607.
• KHALID, U. and HABIMANA, O. (2019). Military Spending and Economic Growth in Turkey: A Wavelet Approach. Defence and Peace Economics, doi: 10.1080/10242694.2019.1664865
• KOLLIAS, C., GEORGE, M. and PALEOLOGOU, S-M. (2004). Defence Expenditure and Economic Growth in The European Union A Causality Analysis. Journal of Policy Modeling, 26(5), 553-569.
• LOONEY, R. E. (1994). The Economics of Third World Defense Expenditures, London: Jaı Press, Inc.
• MINTZ, A. and STEVENSON, R. T. (1995). Defense Expenditures, Economic Growth, and the Peace Dividend: A Longitudinal Analysis of 103 Countries. The Journal of Conflict Resolution, 39(2), 283-305.
• PAPARAS, D., RICHTER, C. and PAPARAS, A. (2016). Military Spending and Economic Growth in Greece and the Arms Race between Greece and Turkey. Journal of Economics Library, 3(1), 38-56.
• PAN, C., CHANG, T. and WOLDE-RUFAEL, Y. (2015). Military Spending and Economic Growth In The Middle East Countries: Bootstrap Panel Causalıty Test. Defence and Peace Economics, 26(4), 443-456.
• RAJU, M. H. and 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(3), 1-8.
• SHAHBAZ M. and SHABBIR M. S. (2012) Military Spending and Economic Growth in Pakistan: New Evidence from Rolling Window Approach. Economic Research-Ekonomska Istraživanja, 25(1), 119-131.
• SABA, C. S. and NGEPAH, N. (2019). Military expenditure and economic growth: evidence from a heterogeneous panel of African countries. Economic Research, 32(1), 3586–3606.
• SUA, C., XUB, Y., CHANGC, H. L., LOBONTD, O. R. and LIUE, Z. (2018). Dynamic Causalities between Defense Expenditure and Economic Growth in China: Evidence from Rolling Granger Causality Test. Defence And Peace Economics, 1-18.
• TUNCAY, Ö. (2017). Finansal Serbestleşme Sonrası Dönem Savunma Harcamalarının Ekonomik Analizi. International Journal of Economic Studies, 3(1), 23-37.
• WIJEWEERA, A. and WEBB, M. J. (2011). Military Spending and Economic Growth in South Asia: A Panel Data Analysis, Defence and Peace Economics, 22(5), 545-554.
• YILANCI, V. and ÖZCAN, B. (2010). Yapısal Kırılmalar Altında Türkiye İçin Savunma Harcamaları İle GSMH Arasındaki İlişkinin Analizi. C.Ü. İktisadi ve İdari Bilimler Dergisi, 11(1), 21-33.
• YURTTANÇIKMAZ, Z. Ç., AALI, A. and EMSEN, Ö. S. (2012). Askeri Harcamalar ve Ambargonun Ekonomik Büyümeye Etkileri: İran Üzerine Bir Uygulama. Atatürk Üniversitesi İktisadi ve İdari Bilimler Dergisi, 26(2), 171-190.