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Defense Expenditures and Economic Growth Relationship: A Panel Data Approach for NATO

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Global Approaches in Financial Economics, Banking, and Finance

Part of the book series: Contributions to Economics ((CE))

Abstract

One of the rules of being successful in the international competition is having technology-intensive manufacturing areas. The investments made in the defense industry, and the recognition of the products that are being produced in this area as technology-intensive products, are increasing the importance of the defense expenditures and the economic growth relationship. Increases in defense spending cause greater investments in industrial sectors. Secondly, economic growth affects the competitiveness of the countries prominently. Thirdly, public expenditures can lead to an increase in investments and growth. This study brings to light the relationship between military expenditures and economic growth for NATO member countries. In the period from 2000 to 2015 for 27 NATO member countries, the two-way direction of the relationship is found by using panel data techniques.

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Notes

  1. 1.

    Levin et al. (2002), Breitung (2000) and Im et al. (2003), Fisher-type tests using ADF and PP tests (Maddala and Wu 1999; Choi 2001; Hadri 2000).

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Authors and Affiliations

  1. İstanbul Ticaret University, İstanbul, Turkey

    Güldenur Çetin, Ayben Koy & Cihat Köksal

  2. Balıkesir University, Balıkesir, Turkey

    Hasan Hüseyin Yıldırım

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  1. Güldenur Çetin
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  2. Hasan Hüseyin Yıldırım
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  3. Ayben Koy
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  4. Cihat Köksal
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Correspondence to Ayben Koy .

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Editors and Affiliations

  1. Istanbul Medipol University, Istanbul, Turkey

    Hasan Dincer

  2. Istanbul Medipol University, Istanbul, Turkey

    Ümit Hacioglu

  3. Istanbul Medipol University , Istanbul, Turkey

    Serhat Yüksel

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Çetin, G., Yıldırım, H.H., Koy, A., Köksal, C. (2018). Defense Expenditures and Economic Growth Relationship: A Panel Data Approach for NATO. In: Dincer, H., Hacioglu, Ü., Yüksel, S. (eds) Global Approaches in Financial Economics, Banking, and Finance. Contributions to Economics. Springer, Cham. https://doi.org/10.1007/978-3-319-78494-6_6

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