Politická ekonomie, 2026 (vol. 74), issue 2

Articles

Investigating the Impact of Oil Rents, Foreign Direct Investment and Exports on Productive Capacity: Concentrating on Spatial Analysis for the Gulf Cooperation Council Countries

Orhan Cengiz, Fatma İdil Baktemur

Politická ekonomie 2026, 74(2) | DOI: 10.18267/j.polek.1498

Oil rents play a significant role for oil-abundant countries; therefore, most oil-abundant countries depend on oil sectors. However, if gains from oil rents are not invested in productive sectors, it may adversely affect long-term sustainable growth. As discussed in the relevant literature in the scope of the resource curse hypothesis or Dutch disease, dependence on natural resources may crowd out productive investment, resulting in decelerating economic growth (GDP). However, crucial policies emerge that suggest that oil rents contribute to or dampen productivity in oil-rich countries. It is observed that few studies have considered the role of oil...

Institutional Determinants of Regional Poverty in Turkey: Evidence from Advanced Causality Analysis

Yildirim Beyazit Çiçen

Politická ekonomie 2026, 74(2) | DOI: 10.18267/j.polek.1499

Poverty continues to be one of the major issues in Turkey, as in many other countries, with a large portion of the population - especially in rural areas - living below the poverty line. Those living in poverty have limited access to key public services such as education, healthcare and housing, which consequently exacerbates social and economic inequalities within society. The gap between wealthy and impoverished groups within society is continually expanding, primarily due to institutional factors that perpetuate this inequality. Drawing on data from 2009 to 2019, this study offers an empirical analysis of the role of institutions in shaping poverty...

Towards Economic Growth and a Sustainable Future: Insights Beyond the Environmental Kuznets Curve

Inzamam Ul Haq, Chunhui Huo, Paulo Ferreira

Politická ekonomie 2026, 74(2) | DOI: 10.18267/j.polek.1501

This study explores the dynamic nexus between economic growth and sustainable development for 92 countries across high, upper-middle, lower-middle and low-income groups. We validate the environmental Kuznets curve (EKC) hypothesis from a novel perspective. We employ a novel technique of Narayan et al. (2016) through simple cross-correlation estimates and a panel causality technique. The analysis covers data from 1990 to 2022 using annual data. Our findings show that the EKC hypothesis is supported for five out of 92 (5%) countries and that income growth will increase sustainable development for 50 (54%) countries. Notably, the analysis reveals...

Military Expenditures and Economic Growth: Evidence from Turkey

Ahmet Kadiroğlu

Politická ekonomie 2026, 74(2) | DOI: 10.18267/j.polek.1502

A recent focus on the socioeconomic impacts of military expenditures has led to a resurgence of interest in research and development activities in this domain. A comprehensive review of extant academic studies reveals a conspicuous absence of research examining the augmented Solow growth model, encompassing capital formation, labour force, military expenditures and economic growth for Turkey. Consequently, this study aims to investigate the impact of capital formation, labour force and military expenditures on economic growth in Turkey from 1991 to 2022. To this end, the study employs the residual augmented least square (RALS) approach. The coefficients...

Cultural Patterns and the Structure of Tax Revenue and Public Expenditures: An International Perspective

Magda Wiśniewska-Kuźma

Politická ekonomie 2026, 74(2) | DOI: 10.18267/j.polek.1493

This study examines the link between cultural patterns and fiscal policy in 29 EU/EFTA countries. Using Ward’s clustering on Hofstede’s dimensions, five groups were formed. Results confirm that cultural clusters share similar tax and expenditure structures. Regression analysis shows that a 1% increase in individualism raises tax revenues by 0.686% and spending by 0.655% (social +0.740%, human capital +0.364%, classical +0.375%, economic +0.340%). A 1% rise in long-term orientation increases indirect tax shares by 0.717% and income taxes by 0.340%. Uncertainty avoidance (+1%) correlates with higher tax revenues (+0.164%) and indirect taxes...

Democracies Prioritize Sustainability as Energy Use Declines

Aribah Aslam, Ghulam Ghouse, Ishaq Bhatti

Politická ekonomie 2026, 74(2) | DOI: 10.18267/j.polek.1489

We develop a theoretical framework to characterize the relationship between democracy and energy use on a global scale. We utilize the generalized method of moments (GMM) model to control for endogeneity on a balanced, global panel dataset encompassing 61 countries across six geographic regions. Contrary to conventional understanding that democracies may have a positive association with energy use, our findings reveal that democracy has a significant negative association with energy use. We conclude that democracies prioritize sustainability globally as energy use declines. These novel results are justified because democracies can often foster a culture...

Towards External Debt Reduction through Inflation Targeting: An Empirical Evaluation of Middle-income Countries

Abdelhamid Moustabchir, Hicham El Ouazzani, Hicham Ouakil, Augustin Foster Chabossou

Politická ekonomie 2026, 74(2) | DOI: 10.18267/j.polek.1490

This study analyses the impact of inflation targeting on the external debt of middle-income countries using the propensity score matching (PSM) method. The results indicate that the adoption of inflation targeting is associated with a significant decrease in external debt, with an average reduction estimated at approximately 15.16 percentage points. This reduction reflects the enhanced credibility of monetary policy, which lowers the risk of default on public debt. These findings suggest that inflation targeting can be a useful tool for managing external debt and reducing fiscal pressures on public finances, but its effectiveness depends on its integration...