The Effects of Defence Expenditures on Economic Growth: A Case Study on Turkey

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Fiscaoeconomia
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The Effects of Defence Expenditures on Economic Growth: A Case Study on Turkey

The Effects of Defence Expenditures on Economic Growth: A Case Study on Turkey

Pages : 2097-2111

View : 194 | Download : 516

Publication Date : 2025-11-27

Article Type : Research Paper

Abstract :This study examines the effects of defence expenditures (DE) on economic growth (EG) between 1990 and 2023. In models where the effects of defence expenditures on economic growth are investigated, the determinants of economic growth are frequently used as control variables. For this reason, the World Uncertainty Index (WUI) is included in the model used in the study. Thus, the study contributes to the literature. On the other hand, the developments in the defence industry in Türkiye in recent years are remarkable. Therefore, the economic and political effects of DE encouraged the preparation of this study. In this study, the AARDL method is used to determine the cointegrated relationship between variables, and then the error correction model is used to obtain long-run findings. According to the findings, fixed capital investments positively affect EG in both the short and long run. While foreign trade deficits affect EG positively in the long run, they affect it negatively in the short run. While the world uncertainty index has a negative effect on EG in the long run, there is no relationship between the variables in the short run. Finally, it is concluded that DE has a positive effect on EG in both the short and long run.
Keywords : Savunma Harcamaları, Ekonomik Büyüme, Ekonomi Politikaları, Zaman Serisi Analizi

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