|
|||||
|
|
The Impact of Military Spending on Economic Growth: The Case of North Cyprus |
|
| Authors: | Mete Feridun Bansi Sawhney Muhammad Shahbaz |
| Institution: | 1. Department of Banking and Finance, Faculty of Business and Economics , Eastern Mediterranean University , Gazi Magosa, Turkey mete.feridun@emu.edu.tr;3. Merrick School of Business , University of Baltimore , Baltimore, USA;4. Department of Management Sciences , COMSATS Institute of Information Technology , Lahore, Pakistan |
| Abstract: | The present study aims at investigating the causal relationship between defence expenditures and economic growth in the case of North Cyprus using the Autoregressive Distributed Lag (ARDL) bounds testing approach to cointegration and Granger causality tests for the period from 1977 to 2007. The results suggest that the variables in question are in a long-run equilibrium relationship and that there exists a strong, positive unidirectional causality running from defence expenditures to economic growth. |
| Keywords: | Defence expenditures Military spending Economic growth Cyprus |