The Effect of Macroeconomic Indicators, Geopolitical Risk And Political Stability Index on Military Expenditures

Military expenditures are an element that exists in every period depending on the global dynamics and take a significant share of the public spending of countries. In this study, it was investigated whether military expenditures within the scope of BRICS-T were affected by inflation, balance of trade, gross domestic product, geopolitical risk index, and political stability index indicators. The impact of selected indicators on military expenditures was examined with panel ARDL/PMG analysis. A long-term negative causal relationship has been identified between military expenditures and both the political stability index and inflation, whereas a positive causal relationship has been found between military expenditures and both the geopolitical risk index and gross domestic product. No significant relationship was found between balance of trade and military expenditures.