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...

It is argued that debt service burden has a negative impact on investment and capital accumulation. The main reason is that the greater percentage of reserves (foreign currency) goes to meet debt service and there will be a reduction in external capital because of a decrease in creditworthiness....

This paper investigates the relationship between external debt, defence expenditures and political business cycles in Turkey for 1960-2002. Here, two important aspects of the political business cycle, the electoral effects and the partisan effects, were investigated. The empirical finding of...

This paper empirically investigates the importance of financial and political variables in determining debt rescheduling probabilities in Turkey for 1955-2000. The problem of sovereign debt default and rescheduling has been the subject of substantial academic research during the last two...

This paper extends the Looney and Frederiksen (1986) study and investigates the relationship among external debt, defence expenditures and GNP in Turkey for 1960-2002. After applying cointegration analysis of a multivariate system of equations, impulse response functions and variance...

This paper investigates a series of unit root, cointegration and causality tests to ascertain the direction of causality between the growth of GNP and defence expenditure in Turkey for the years 1955-2000. The main conclusion is that there is a long-run equilibrium relationship between GNP and...

The purpose of this paper is to review existing empirical studies of external debt and economic growth relationship. The decline in investment and growth performance of the highly indebted countries in the past three decades is frequently attributed, at least to some extent, to the burden of...