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- W2274267569 abstract "One of the most important reasons that led Greece to the current macroeconomicinstability is the high military spending during the last decades. Thus, it is necessary toexamine the impact of military spending on economic growth for the case of Greece.Furthermore, it will be very useful to examine the arms race hypothesis between Greeceand Turkey in order to identify if there is an interaction between these countries that leadsto the high level of military spending. In this paper we empirically test the relationshipbetween military spending and economic growth for Greece and Turkey during 1957-2013,and examine the validity of arms race hypothesis between the two countries. We deployed unit root tests, unit root tests with structural changes, cointegration techniques and finally Granger causality tests. Granger causality tests in the case of Greece and Turkey imply that the causality runs from military spending to economic growth, however we find that there is no evidence of causality between Greek and Turkish military spending, which mean that these countries act independently." @default.
- W2274267569 created "2016-06-24" @default.
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- W2274267569 date "2016-03-18" @default.
- W2274267569 modified "2023-09-26" @default.
- W2274267569 title "Military Spending and Economic Growth in Greece and the Arms Race between Greece and Turkey" @default.
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- W2274267569 doi "https://doi.org/10.1453/jel.v3i1.648" @default.
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