Does the Optimal Size of Defense Expenditure Exist? An Empirical Study on Turkey
Öz
The purpose of this study was to analyze whether an “inverted U” shape
relationship between economic growth and defense expenditure or not, what the
optimal ratio of defense expenditure for Turkey is, and whether Turkey’s
defense expenditure in the period of 1990-2017 was optimal. The dependent
variable of the study was the ratio of yearly economic growth, and independent
variables were the ratio of defense expenditure in GDP and yearly unemployment
rate respectively. Data which covered 1990-2017 period regarding Turkey was
analyzed by using Time Series Analysis with FMOLS method. Economic growth and
unemployment series were acquired from the Worldbank, while defense expenditure
was from SIPRI data bank. According to the results; we have concluded that there
is an “inverted U” shape the relationship between economic growth and defense
expenditure. In other words, Armey Curve exists for Turkey. Also, we have
observed the ratio of defense expenditure as 2.5% of the GDP. The defense
expenditure of Turkey from 2010 is under this value of 2.5%. Considering this
point; it can be put forward that Turkey may increase its defense expenditure
up to 2.5% of the GDP to provide economic growth. Taking into account of the
leading position and also the importance of the defense industry in the
manufacturing industry, this evaluation is supported not only with the first
law of Kaldor but also studies which propose that defense expenditure has
positive effects on the economic growth as well.
Anahtar Kelimeler
Kaynakça
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Ayrıntılar
Birincil Dil
İngilizce
Konular
-
Bölüm
Araştırma Makalesi
Yazarlar
Rıza Bayrak
*
Türkiye
Yayımlanma Tarihi
7 Mayıs 2019
Gönderilme Tarihi
9 Aralık 2018
Kabul Tarihi
14 Mart 2019
Yayımlandığı Sayı
Yıl 2019 Cilt: 18 Sayı: 1
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