YURTTANÇIKMAZ, Ziya Çağlar Atatürk Üniversitesi - İİBF İktisat Bölümü, Turkey , AALI, Amin Atatürk Üniversitesi - Sosyal Bilimler Enstitüsü, Turkey , EMSEN, Ömer Selçuk Atatürk Üniversitesi - İktisadi ve İdari Bilimler Fakültesi - İktisat Bölümü, Turkey

THE EFFECTS OF MILITARY EXPENDITURE AND EMBARGO ON ECONOMIC GROWTH: AN APPLICATION OF IRAN

36670

Iran has been a country are exposed to many negative factors both domestic and external since the late 1970s. Especially the 1979 revolution and the Iraq-Iran war which started 1980 and lasted eight years, has led to the loss of labor and capital. In this study the economy of Iran, what changes it has caused losses in the embargo, sanctions and the possible effects of defense spending on economic growth were investigated using the method of bounds testing. According to the results of study it has been identified military spending and openness of the economy in the long term positive effect on economic growth. In the short term, the growth of military spending is statistically significant and positive impact on the economic growth beside this result there were no significant effects of openness on economic growth.

171

Economic growth , Military expenditure , War , Embargo , ARDL approach

Journal Of Economics and Administrative Sciences, Ataturk University

190