The Relationship Between Military Expenditures, Democracy and Economic Development

Military Expenditures, Democracy and Economic Development Relationship

Abstract

From the 1950s and onwards, the relationship between democracy and economic development remains a matter of curiosity. In this study, the relationship between democracy and economic development as institutional determinants of military expenditures is investigated by Dumitreschu-Hurlin (2012) time-varying panel causality test for 34 OECD countries for the period of 1990-2017. As a result of the analysis, between 1995-2015 period there was a two-waycausal relationship between military expenditures and economic development, military expenditures and democracy, and a one-way causality running from development to democracy. In the period between 2002 and 2016, there was a one-way causal relationship from democracy to military spending and from democracy to development. In the period of 2003-2017, it was revealed that there was a one way causality from democracy to development and the compatibility perspective is valid.          

 

Author Biography

Ekrem Gül, Sakarya University

Prof. Gül, works at the Economics Department of Sakarya University.

Published
2019-12-31
How to Cite
Gül, E., & Torusdag, M. (2019). The Relationship Between Military Expenditures, Democracy and Economic Development. International Journal of Contemporary Economics and Administrative Sciences, 9(2), 405-427. https://doi.org/10.5281/zenodo.3596106
Section
Articles