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Military Spending and Income Inequality:Evidence on Cointegration and Causality for Turkey,1963–2007

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This paper examines the relationship between defence spending and income inequality in Turkey for the period of 1963–2007. Using the Theil Index of pay inequality as a proxy of overall income distribution, this study overcomes the problem of lack of time series data. Utilizing basic cointegration and causality tests, the paper aims to add to the literature by providing evidence that defence spending has an impact on income inequality for the case of Turkey.

Keywords: C22; Defence spending; Granger causality; H56; Income inequality; Turkey

Document Type: Research Article


Affiliations: Department of Economics, ,Kahramanmaras Sutcu Imam University, Turkey

Publication date: June 1, 2012

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