The Effect of Military Expenditures on the Profit Rates in Turkey

This paper analyses the effects of military expenditure on the rate of profits in Turkey during the period of 1950–2008 by employing a Markov-switching autoregression model within a Marxist framework for the first time. Findings show that the effect of military expenditure on profit rates is nonlinear—negative during turbulent years and positive in more tranquil years. The negative effects are larger than positive effects, but the probability of positive effects prevailing is larger