Analysis of the Effects of Defense Expenditures on Income Distribution and Economic Development with Panel Asymmetric Causality Test: Brics Countries and Turkey Case

Gül E., Torusdağ M.

International Journal of Contemporary Economics and Administrative Sciences, vol.9, no.1, pp.1-24, 2019 (ESCI)


In this study, for BRICS countries and Turkey defense spending
economic development and income distribution relationship is examined
for the period 1995-
2015. High defense expenditures are on the agenda
as an important research top
ic in the world and in our country. Therefore,
the effects of defense expenditures on income distribution and economic
development of countries can be determined by examining these three
variables. For the BRICS countries and Turkey, to examining the impac
of defense spending and income distribution to economic development
too much work not found. Westerlund (2008) found that the cointegration
relationship between the main variables and the negative components
was not detected in the long term, whereas lon
g- term relationship was
found between the positive components.
According to the results of the asymmetric panel causality
analysis, only one
-way causality from economic growth to defense
expenditures was determined between economic growth and defense
expenditures in the period 1995-
2010, while there was no causality f
defense expenditures to economic growth. One
-way causality from
income inequality to defense expenditures was identified between 1995
and 2010 in terms of income inequality and defense expenditures, while
bi-directional causality was detected in 1996
-2011 period. In the period
of 2000-
2015, it is concluded that there is a one
-way causality from
defense expenditures to income inequality