Military expenditure, financial development and environmental degradation in Turkey: A comparison of CO2 emissions and ecological footprint

Gokmenoglu, Korhan K. and Taspinar, Nigar and Rahman, Mohammad Mafizur (2021) Military expenditure, financial development and environmental degradation in Turkey: A comparison of CO2 emissions and ecological footprint. International Journal of Finance and Economics, 26 (1). pp. 986-997. ISSN 1076-9307

Abstract

This study investigates the long run equilibrium relationship among military expenditure, financial development, energy use, economic growth and environmental degradation in Turkey for the period of 1960–2014. Ecological footprint and carbon dioxide emissions are used as separate proxies for environmental degradation. Fully modified ordinary least squares (FMOLS) estimator results suggest that military expenditure, energy use and economic growth increase the environmental degradation while financial development improves the environmental quality in Turkey. Toda Yamamoto (1995) causality test results reveal that there is a unidirectional causality running from military expenditure to CO2 emissions and ecological footprint; and a bidirectional causality between military expenditure and economic growth. The findings of the study confirm the existence of destruction theory for the case of Turkey.

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Item Type:	Article (Commonwealth Reporting Category C)
Refereed:	Yes
Item Status:	Live Archive
Faculty/School / Institute/Centre:	Historic - Faculty of Business, Education, Law and Arts - School of Commerce (1 Jul 2013 - 17 Jan 2021)
Faculty/School / Institute/Centre:	Historic - Faculty of Business, Education, Law and Arts - School of Commerce (1 Jul 2013 - 17 Jan 2021)
Date Deposited:	20 Aug 2020 01:54
Last Modified:	23 Apr 2021 00:06
Uncontrolled Keywords:	causality test; economic growth; energy use; environmental degradation; financial development; FMOLS; military expenditure; Turkey
Fields of Research (2008):	14 Economics > 1402 Applied Economics > 140205 Environment and Resource Economics 14 Economics > 1402 Applied Economics > 140212 Macroeconomics (incl. Monetary and Fiscal Theory) 14 Economics > 1402 Applied Economics > 140207 Financial Economics 14 Economics > 1403 Econometrics > 140305 Time-Series Analysis
Fields of Research (2020):	38 ECONOMICS > 3801 Applied economics > 380105 Environment and resource economics 38 ECONOMICS > 3801 Applied economics > 380112 Macroeconomics (incl. monetary and fiscal theory) 38 ECONOMICS > 3801 Applied economics > 380107 Financial economics 38 ECONOMICS > 3802 Econometrics > 380205 Time-series analysis
Socio-Economic Objectives (2008):	D Environment > 96 Environment > 9601 Air Quality > 960199 Air Quality not elsewhere classified D Environment > 96 Environment > 9699 Other Environment > 969999 Environment not elsewhere classified
Identification Number or DOI:	https://doi.org/10.1002/ijfe.1831
URI:	http://eprints.usq.edu.au/id/eprint/39139

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