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Journals / İstanbul İktisat Dergisi / 2021 / Cilt: 71 - Sayı: 1

The Relationship between Defense Expenditures and Employment in NATO Member States: Bootstrap Panel Causality Test

NATO Üyesi Ülkelerde Savunma Harcamaları ve İstihdam İlişkisi: Bootstrap Panel Nedensellik Testi

Şerife ÖZŞAHİN
Gülbahar ÜÇLER
Pages
231–249
Publication Date
2021-07-16
DOI
—
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AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

Thus, it seems impossible to make a general inference about the causality relationship between defense expenditures and employment in NATO member countries.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:In recent years, global tensions, geopolitical risks, political crises, regional conflicts, and wars have played an important role in the increase of defense expenditures of countries.
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Key Findings & Data:The economic effects of increased defense spending have become one of the frequently discussed topics.
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Conclusion & Impact:Thus, it seems impossible to make a general inference about the causality relationship between defense expenditures and employment in NATO member countries.
🔬Design:Research Article
📍Scope:2006 Verileri
⚙️Variables:Savunma harcamaları · İstihdam · NATO üyesi ülkeler

Abstract

In recent years, global tensions, geopolitical risks, political crises, regional conflicts, and wars have played an important role in the increase of defense expenditures of countries. The economic effects of increased defense spending have become one of the frequently discussed topics. The aim of this study is to examine the causal relationship between defense expenditures and employment rates in 18 NATO member countries. To this end, the relationship between defense expenditures and employment rates were analyzed using the Kónya (2006) Bootstrap Panel Causality Test in the post-Cold War period. According to the findings from the 1991-2018 period, a causality relationship was found in 5 of the 18 countries in the panel from defense expenditures to employment, and in 3 of the 18 countries from employment rates to defense expenditures. Thus, it seems impossible to make a general inference about the causality relationship between defense expenditures and employment in NATO member countries.

Özet

Son yıllarda küresel ölçekte yaşanan gerginlikler, jeopolitik riskler, siyasal krizler, bölgesel çatışmalar ve savaşlar ülkelerin savunma harcamalarını artırmasında önemli rol oynamıştır. Savunma harcamalarındaki artış, savunma harcamalarının yol açtığı ekonomik etkileri sıklıkla tartışılan konulardan biri haline getirmiştir. Bu çalışmanın amacı, NATO üyesi 18 ülkede savunma harcamaları ile istihdam oranları arasındaki nedensellik ilişkisini incelemektir. Bu amaçla, Soğuk Savaş sonrası dönemde savunma harcamaları ve istihdam oranları arasındaki ilişki Kónya (2006) Bootstrap Panel Nedensellik Testi ile analiz edilmiştir. 1991-2018 döneminden elde edilen bulgulara göre panelde yer alan 18 ülkenin 5’inde savunma harcamalarından istihdama doğru, 3’ünde ise istihdam oranlarından savunma harcamalarına doğru nedensellik ilişkisi tespit edilmiştir. Bu doğrultuda, NATO üyesi ülkelerde savunma harcamaları ile istihdam oranı arasındaki nedensellik ilişkisine dair genel bir çıkarımda bulunmak mümkün görünmemektedir.

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Cite This Article

ÖZŞAHİN, Ş., ÜÇLER, G. (2021). The Relationship between Defense Expenditures and Employment in NATO Member States: Bootstrap Panel Causality Test. İstanbul İktisat Dergisi, Cilt: 71 - Sayı: 1, 231–249. https://ajindex.com/articles/243924

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