Affiliation:
1. KIRIKKALE ÜNİVERSİTESİ
Abstract
Although there are many studies on the effect of defence expenditures, which have a significant share in government expenditures, on various macroeconomic variables, there are very few studies on their effects on government debt, budget deficit and current account deficit. In this paper, the effect of defence expenditures on government debt, budget deficit, and current account deficit is empirically analyzed by system GMM analysis employing annual data from 16 developed and 9 developing countries for the period 2000-2019. The findings of the paper show that defence expenditures are important factor to determine government debt, budget deficit and current account deficit.
Publisher
Eskisehir Osmangazi University Journal of Economics and Administrative Sciences
Reference36 articles.
1. Ahmed, A. D. (2012), “Debt Burden, Military Spending and Growth in Sub-Saharan Africa: A Dynamic Panel Data Analysis.” Defence and Peace Economics, Vol. 23, No.5: 485-506.
2. Alozious, J. (2015), “Fiscal Policies and Current Account Dynamics in OECD Countries: Do Military Expenditures Matter?” Master’s Thesis, Lund University.
3. Arellano, M., & Bond, S. (1991), “Some Tests Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations.” The Review of Economic Studies, Vol. 58, No. 2: 277-297.
4. Asteriou, D., & Hall, S. G. (2011), Applied Econometrics. Macmillan Education, Palgrave: Third Edition.
5. Azam, M., & Feng, Y. (2015), “Does Military Expenditure Increase External Debt? Evidence from Asia”. Defence and Peace Economics, doi:10.1080/10242694.2015.1072371