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Military Expenditures and Economic Growth in Central and Eastern EU Countries: Evidence from the Post-Cold War Era

Published online by Cambridge University Press:  17 May 2017

Mert Topcu  and
İlhan Aras
Mert Topcu
Affiliation:
Nevşehir Hacı Bektaş Veli University, Faculty of Economics and Administrative Sciences, Department of Economics, 50300, Nevşehir, Turkey. E-mail: [email protected]
İlhan Aras
Affiliation:
Nevşehir Hacı Bektaş Veli University, Faculty of Economics and Administrative Sciences, Department of International Relations, 50300, Nevşehir, Turkey
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Abstract

Although the relationship between military expenditures and economic growth is well documented for the old members of the European Union, empirically little is known for the new members. Thus, the goal of this paper is to investigate the economic impact of military expenditures in Central and Eastern European countries employing panel cointegration and causality methods for the period 1993–2013. Findings indicate that the variables in question do not move together in the long run and the direction of causality in the short run is from economic growth to military expenditures. The implications of the results for international relations are discussed.

Type
Articles
Information
European Review , Volume 25 , Issue 3 , July 2017 , pp. 453 - 462
Copyright
© Academia Europaea 2017 

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References

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