Theoretical and Applied Economics
No. 3 / 2016 (608), Autumn
Testing the relationship between military spending and private investments: Evidence from Turkey
Ahi Evran University, Kırşehir, Turkey
Abstract. This study aims to empirically test the relationship between military spending and private investments for the period 1975-2014. Throughout this aim, in order to test the stationarity of series and the co-integration relationship between them, unit root test of Carrioni-i-Silvestre et al. (2009) and co-integration test of Maki (2012) are used, respectively. Then, co-integration coefficients are estimated via Stock and Watson (1993)’s dynamic ordinary least squares (DOLS) method. Finally, causal relationships between the series are tested by Hacker and Hatemi-J (2012) bootstrap causality test. Empirical findings point out the positive relationship between military spending and private investment (crowding in effect) in long term. However, the results of the causality test indicate that there is no causality from military spending to private investments. This study is thought to make a contribution to the literature for being the first study analyzing the relationship between military spending and private investments in Turkey.
Contents
RASDAQ: The final curtain
The relationship between public expenditure and economic growth in Romania: Does it obey Wagner’s or Keynes’s Law?
Cracks in BRICs: A sectoral financial balances analysis and implications for macroeconomic policy
An empirical study of factors influencing total unemployment rate in comparison to youth unemployment rate in selected EU member-states
Is real depreciation expansionary? The case of the Czech Republic
Determinants of sovereign bond yields in emerging economies: Some panel inferences
Investment funds and portfolio of loan guarantees as financial steps proposals to support innovative Small and Medium Enterprises
Dynamic relationship among foreign direct investments, human capital, economic freedom and economic growth: Evidence from panel cointegration and panel causality analysis
Integrating the issue of infrastructural investment with economic growth: The case of India
Globalization of the corruption phenomenon – human capital gone wild
Productivity spillovers from FDI in Turkey: Evidence from quantile regressions
Predicting probability of default of Indian companies: A market based approach
Which country after Greece? Sustainability of budget deficits in selected EU countries: A panel cointegration analysis with multiple structural breaks under cross-section dependence
Statistical-econometric model used to analyze the operational and insolvency risks
Short and long term analysis of some factors effecting youth unemployment in Turkey
Determining the causal relationships among entrepreneurship, educational attainment and per capita GDP in high-income OECD countries
Assessment of the bankruptcy risk based on the solvency ratio
Using simulation and modeling to improve career management processes in organizations
Commodity market integration and price transmission: Empirical evidence from India
Testing the relationship between military spending and private investments: Evidence from Turkey
Growth-finance nexus: Empirical evidence from India
The importance and role of small and medium-sized businesses
Skill biased technological changes: Case of the MENA Region
Net earnings trends in the EU countries
Communication and PR in crisis situations