Thursday, 17 March 2011: 17:40
In this paper it is investigated the relation between the Greek and Turkish military spendings in order to identify, firstly, its exact statistical form and, secondly, the ratio between the two magnitudes. Using annual data over the period from 1949 to 2008, the stationarity of the series is tested by performing DF GLS and a KPSS unit root test. After the performance of granger causality, the long-run relation between the stationary series is estimated. Finally, the findings are used to specify the ratio between the Greek and Turkish military spendings.