Citation

Karagol E. Def. Peace Econ. 2005; 16(2): 117-125.

Copyright

(Copyright © 2005, Informa - Taylor and Francis Group)

DOI

10.1080/10242690500070045

PMID

unavailable

Abstract

The causal relationship between defence expenditures and external debt is investigated by applying a multivariate model. Our estimation results indicate that defence expenditures and external debt for Turkey are cointegrated. To test for Granger causality in the presence of cointegration between variables, we employ a vector error correction model. Empirical results for Turkey over the period 1955-2000 suggest a long run and short run unidirectional causality running from defence expenditures to external debt but not vice versa.