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

GÖKMENOĞLU KARAKAYA K., Taspinar N., Rahman M. M.

International Journal of Finance and Economics, vol.26, no.1, pp.986-997, 2021 (SSCI) identifier

  • Publication Type: Article / Article
  • Volume: 26 Issue: 1
  • Publication Date: 2021
  • Doi Number: 10.1002/ijfe.1831
  • Journal Name: International Journal of Finance and Economics
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus, ABI/INFORM, Aerospace Database, Business Source Elite, Business Source Premier, Communication Abstracts, EconLit, Geobase, Metadex, vLex, Civil Engineering Abstracts
  • Page Numbers: pp.986-997
  • Keywords: causality test, economic growth, energy use, environmental degradation, financial development, FMOLS, military expenditure, turkey
  • Ankara Haci Bayram Veli University Affiliated: Yes


© 2020 John Wiley & Sons, Ltd.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.