BazEkon - The Main Library of the Cracow University of Economics

BazEkon home page

Main menu

Author
Waszkiewicz Grzegorz (Military University of Technology in Warsaw, Poland)
Title
Drivers of Greek and Turkish Defense Spending
Source
International Journal of Management and Economics, 2016, nr 51, s. 33-46, wykr., tab., aneks, bibliogr. 27 poz.
Zeszyty Naukowe / Szkoła Główna Handlowa. Kolegium Gospodarki Światowej
Keyword
Bezpieczeństwo narodowe, Wydatki wojskowe, Obronność
National security, Military expenditures, Defences
Note
summ.
Country
Grecja, Turcja
Greece, Turkey
Abstract
This paper evaluates the factors responsible for maintaining substantial military expenditures in Greece and Turkey. The presented research encompasses theoretical and empirical aspects. First, defense spending by both countries was analyzed based on statistical data from international sources. Next, the theoretical determinants of budgetary spending are reviewed, which consider political, economic and military factors behind high expenditures on the army in Greece and in Turkey. Finally, Granger causality tests is applied to determine whether a causal relation between variables exists in the case of these two countries. We conclude that defense expenditures in Greece and Turkey exceed the NATO average, but are relatively low relative to those of selected Middle Eastern countries. Our results indicate that high military spending level in Turkey is mainly driven by national security concerns, whereas an economic driver prevails in Greece. (original abstract)
Accessibility
The Library of Warsaw School of Economics
The Main Library of the Wroclaw University of Economics
Full text
Show
Bibliography
Show
  1. Burnside, C., Eichenbaum, M., Rebelo, S. (2003), Government finance in the wake of currency crises, NBER Working Paper, No. 9786, June, pp. 1-66.
  2. Chrysogelos N., Defence spending in Greece from 1974 to 2010 exceeds 250 bn euros, available at: https://europeangreens.eu, accessed: January 20, 2016.
  3. Creel, J., Kamber, G. (2004), Debt, deficits and inflation on the road to the EU: the case of Turkey, CAIRN, Revue de l'OFCE, No. 5, pp. 1-18.
  4. Davutoğlu, A., (2012), Principles of Turkish Foreign Policy and Regional Political Structuring, Turkey Policy Brief Series, 3th edition, pp. 1-9.
  5. Doing Business (2013), Smarter Regulations for Small and Medium-Size Enterprises, World Bank, International Finance Corporation.
  6. Dokos, T., Kollias, Ch. (2013), Greek defence spending in times of crisis: The urgent need for defence reform, ELIAMEP Thesis, March, pp. 1-11.
  7. Eurostat Database, available at: http://ec.europa.eu/eurostat/data/database, accessed: March 27, 2016.
  8. Federal Reserve Bank Statistics. available at: http://www.federalreserve.gov/econresdata/statisticsdata.htm.
  9. Human Development Report, (2010), The Real Wealth of Nations: Pathways to Human Development, 20th Anniversary Edition, UNDP.
  10. SIPRI website, available at: https://www.sipri.org, accessed: March 10, 2016.
  11. Kollias, Ch. (1996), The Greek - Turkish Conflict and Greek Military Expenditure 1960-92, Journal of Peace Research, Vol. 33, No. 2, pp. 217-228.
  12. Looney, R. E., Frederiksen, P. C. (1986), Defense expenditures, external public debt and growth in developing countries, Journal of Peace Research, Vol. 23, No. 4, pp. 329-337.
  13. Minor, J. (2003), Mapping the New Political Risk, available at: http://cf.rims.org/Magazine/PrintTemplate.cfm?AID=1892, accessed: April 10, 2016.
  14. Nordhaus, W. D., Oneal, R. O., Russett, B. (2009), The Effects of the Security Environment on Military Expenditures: Pooled Analyses of 165 Countries, 1950-2000, Cowles Foundation Discussion Paper No. 1707.
  15. NATO data, available at: http://www.nato.int/, accessed: May 10, 2016.
  16. OECD Statistics, available at: http://stats.oecd.org/, accessed: May 10, 2016.
  17. Özsoy, O. (2008), Defence spending and macroeconomy: The case of Turkey, Defence and Peace Economics, Vol. 19, No. 3, p. 103-111. [Web of Science]
  18. Rajan, R., Zingales, L. (2003), The Great Reversals: The Politics of Financial Development in the Twentieth Century, Journal of Financial Economics, Vol. 69, No. 1, pp. 5-50.
  19. Rakesh, B. S., Rasheed, A. A. (2012), Global risk in changing world: New paradigms and practice, Organizational Dynamics, Vol. 41, No. 4. pp. 308-317. [Web of Science]
  20. SIPRI Statistics, available at: https://www.sipri.org/databases/milex, accessed: June 14, 2016.
  21. Smith, P. R. (1989), Models of military expenditure, Journal of Applied Econometrics, Vol. 4, No. 4, pp. 345-359. [Crossref]
  22. Teixeira, N. S., Santos Pinto, A. (2012), Southern Europe Defence in Times of Austerity, available at: http://www.lse.ac.uk/IDEAS/publications/reports/pdf/SR017/Teixeira&Pinto.pdf, accessed: April 25, 2016.
  23. Thompson, E. A. (1974), Taxation and National Defence, Journal of Political Economy, Vol. 82, No. 4, pp. 755-782.
  24. Trends in international Arms Transfer, (2013, 2014), SIPRI Fact Sheet.
  25. Turkey Progress Report (2014), European Union, October.
  26. Veremis, T. (1980), Greek Security Considerations-A Historical Perspective, Athens Papazisis Publishers.
  27. World Bank Statistics, available at: http://databank.worldbank.org/data/home.aspx, accessed: March 19, 2016.
Cited by
Show
ISSN
2299-9701
Language
eng
URI / DOI
http://dx.doi.org/10.1515/ijme-2016-0018
Share on Facebook Share on Twitter Share on Google+ Share on Pinterest Share on LinkedIn Wyślij znajomemu