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DOI :10.26650/SJ.2023.43.2.0043-1   IUP :10.26650/SJ.2023.43.2.0043-1    Full Text (PDF)

Military Spending and Employment in Eastern European Countries: New Evidence from Panel Data Analysis

Abdüsselam Sağın, Barış Kocaarslan

This study used the Keynesian theory of employment to discover the relationship between military expenditure and employment in Eastern European countries (Czechia, Estonia, Latvia, Slovenia, Hungary, Slovakia, and Poland) during the postcommunist period. To ensure robust estimates, we considered other economic indicators such as gross domestic product, wages, investments, and government expenditure. To fulfill the main purpose of our research, we used several types of panel autoregressive distributed lag (ARDL) techniques, as well as the panel cointegration and panel Granger-causality tests. The results suggested that there is a cointegrating relationship between employment and other explanatory variables. We found a Granger causality from the explanatory variables of interest (military expenditure, gross domestic product, wage, investment, and government expenditure) to employment. Panel ARDL results suggested that an increase in military expenditure results in an immediate increase in employment, but over a longer period of time the opposite is true. Additionally, over time the gross domestic product and investments had a positive effect on employment, whereas wages and government expenditure harmed employment. Our findings provide useful insights into understanding the employment dynamics of Eastern European countries during the post-Cold War period and present valuable policy implications.

Keywords: Employment, Panel ARDL model, Military expenditures, Eastern European countries, Cointegration, Causality
JEL Classification : E12 , E22 , E24 , P24

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APA

Sağın, A., & Kocaarslan, B. (2023). Military Spending and Employment in Eastern European Countries: New Evidence from Panel Data Analysis. İstanbul University Journal of Sociology, 43(2), 259-274. https://doi.org/10.26650/SJ.2023.43.2.0043-1


AMA

Sağın A, Kocaarslan B. Military Spending and Employment in Eastern European Countries: New Evidence from Panel Data Analysis. İstanbul University Journal of Sociology. 2023;43(2):259-274. https://doi.org/10.26650/SJ.2023.43.2.0043-1


ABNT

Sağın, A.; Kocaarslan, B. Military Spending and Employment in Eastern European Countries: New Evidence from Panel Data Analysis. İstanbul University Journal of Sociology, [Publisher Location], v. 43, n. 2, p. 259-274, 2023.


Chicago: Author-Date Style

Sağın, Abdüsselam, and Barış Kocaarslan. 2023. “Military Spending and Employment in Eastern European Countries: New Evidence from Panel Data Analysis.” İstanbul University Journal of Sociology 43, no. 2: 259-274. https://doi.org/10.26650/SJ.2023.43.2.0043-1


Chicago: Humanities Style

Sağın, Abdüsselam, and Barış Kocaarslan. “Military Spending and Employment in Eastern European Countries: New Evidence from Panel Data Analysis.” İstanbul University Journal of Sociology 43, no. 2 (Apr. 2024): 259-274. https://doi.org/10.26650/SJ.2023.43.2.0043-1


Harvard: Australian Style

Sağın, A & Kocaarslan, B 2023, 'Military Spending and Employment in Eastern European Countries: New Evidence from Panel Data Analysis', İstanbul University Journal of Sociology, vol. 43, no. 2, pp. 259-274, viewed 27 Apr. 2024, https://doi.org/10.26650/SJ.2023.43.2.0043-1


Harvard: Author-Date Style

Sağın, A. and Kocaarslan, B. (2023) ‘Military Spending and Employment in Eastern European Countries: New Evidence from Panel Data Analysis’, İstanbul University Journal of Sociology, 43(2), pp. 259-274. https://doi.org/10.26650/SJ.2023.43.2.0043-1 (27 Apr. 2024).


MLA

Sağın, Abdüsselam, and Barış Kocaarslan. “Military Spending and Employment in Eastern European Countries: New Evidence from Panel Data Analysis.” İstanbul University Journal of Sociology, vol. 43, no. 2, 2023, pp. 259-274. [Database Container], https://doi.org/10.26650/SJ.2023.43.2.0043-1


Vancouver

Sağın A, Kocaarslan B. Military Spending and Employment in Eastern European Countries: New Evidence from Panel Data Analysis. İstanbul University Journal of Sociology [Internet]. 27 Apr. 2024 [cited 27 Apr. 2024];43(2):259-274. Available from: https://doi.org/10.26650/SJ.2023.43.2.0043-1 doi: 10.26650/SJ.2023.43.2.0043-1


ISNAD

Sağın, Abdüsselam - Kocaarslan, Barış. “Military Spending and Employment in Eastern European Countries: New Evidence from Panel Data Analysis”. İstanbul University Journal of Sociology 43/2 (Apr. 2024): 259-274. https://doi.org/10.26650/SJ.2023.43.2.0043-1



TIMELINE


Submitted17.08.2023
Accepted18.10.2023
Published Online27.10.2023

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