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This paper examines the relationship between defence spending and income inequality in Turkey for the period of 1963–2007. Using the Theil Index of pay inequality as a proxy of overall income distribution, this study overcomes the problem of lack of time series data. Utilizing basic cointegration and causality tests, the paper aims to add to the literature by providing evidence that defence spending has an impact on income inequality for the case of Turkey.
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Adem Yavuz Elveren (2012) studied this question.
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