ANALYSIS OF THE EFFECTS OF DEFENSE EXPENDITURES ON INCOME DISTRIBUTION AND ECONOMIC DEVELOPMENT WITH PANEL ASYMMETRIC CAUSALITY TEST: BRICS COUNTRIES AND TURKEY CASE

Abstract

According to the results of the asymmetric panel causality analysis, only one-way causality from economic growth to defense expenditures was determined between economic growth and defense expenditures in the period 1995-2010, while there was no causality from defense expenditures to economic growth. One-way causality from income inequality to defense expenditures was identified between 1995 and 2010 in terms of income inequality and defense expenditures, while bi-directional causality was detected in 1996-2011 period. In the period of 2000-2015, it is concluded that there is a one-way causality from defense expenditures to income inequality.