Military Intervention, Coalition Governments and Economic Growth: Evidence from Turkey

Authors

  • M. Veysel KAYA Kırıkkale University
  • Erkan DEMİRBAŞ Fatih University

Keywords:

Military Intervention, Coalition, Economic Growth, Co-integration, Vector Error Correction

Abstract

The aim of this study is to analyze the relation between military interventions, coalitions and economic growth. In the study the relation between foreign direct investment, unemployment and growth also analyzed. For this purpose a semi-log model is constructed and Ordinary Least Squares (OLS) method used to test the linear relation between military interventions, coalitions, certificates given to foreign companies for investment, unemployment and GDP per capita. According to the results of analysis, presence of the co-integration is confirmed in the long-run between mentioned variables. And it is found out that there is a negative and significant relation between unemployment, number of certificates given to foreign companies for investment, coalition and economic growth. The relation between military intervention and growth is found insignificant and negative. The VECM model was used to test the causality shows that during the transition process from short-run to long-run, balance will be established. Deviation of GDP per capita in the short-run will gravitate towards balance in the long-run.

Published

30-11-2012

How to Cite

KAYA, M. V., & DEMİRBAŞ, E. (2012). Military Intervention, Coalition Governments and Economic Growth: Evidence from Turkey. Eurasian Journal of Business and Economics, 5(10), 1-13. Retrieved from https://ejbe.org/index.php/EJBE/article/view/92

Issue

Section

Articles