Opportunities and Challenges in Sustainability (OCS), cilt.1, sa.1, ss.1, 2023 (Hakemli Dergi)
Abstract: This study presents a comprehensive analysis of the influence of defense expenditures on the GrossDomestic Product (GDP) in Turkey from 1974 to 2021. Defense spending, crucial for national security, oftendiverges from regular civic investments such as education, healthcare, and transportation. The significance of theseexpenditures becomes evident in times of international tension, terrorist threats, and warfare. Globally, defensebudgets are escalating, and Turkey, a North Atlantic Treaty Organization (NATO) member, is no exception.Recent trends show a decline in Turkey's public defense spending, with current levels lower than in the 1960s yethigher than the NATO average during 2014-2021. Concurrently, private sector investment in the defense industryhas risen, underscoring Turkey's involvement in global defense dynamics. This research adopts the AutoregressiveDistributed Lag (ARDL) bounds test and the Toda-Yamamoto causality test to scrutinize the long-term and causalrelationships between defense spending and economic growth. The ARDL bounds test reveals a long-term negativecointegration relationship, while the Toda-Yamamoto test indicates a unidirectional causal relationship fromdefense expenditures to GDP at a 10% significance level. These findings affirm the Neoclassical economic theory'spostulation of a negative impact of defense spending on growth. Despite this, the paper argues for the necessity ofsustained defense expenditures in Turkey, given its unique historical and geopolitical context. The study navigatesthrough various theoretical perspectives, notably the Keynesian and neoliberal approaches, and their specificadaptations in defense economics: military Keynesianism and private military services. It critically assesses theseframeworks, integrating their critiques into the analysis. The study contributes to the discourse on defenseeconomics by providing empirical evidence from a critical NATO member, balancing the theoretical debate withpractical insights from Turkey's experience. This dual approach, combining empirical analysis with theoreticalexploration, offers a nuanced understanding of the complex interplay between defense spending and economicgrowth, particularly in geopolitically sensitive regions
Abstract: This study presents a comprehensive analysis of the influence of defense expenditures on the GrossDomestic Product (GDP) in Turkey from 1974 to 2021. Defense spending, crucial for national security, oftendiverges from regular civic investments such as education, healthcare, and transportation. The significance of theseexpenditures becomes evident in times of international tension, terrorist threats, and warfare. Globally, defensebudgets are escalating, and Turkey, a North Atlantic Treaty Organization (NATO) member, is no exception.Recent trends show a decline in Turkey's public defense spending, with current levels lower than in the 1960s yethigher than the NATO average during 2014-2021. Concurrently, private sector investment in the defense industryhas risen, underscoring Turkey's involvement in global defense dynamics. This research adopts the AutoregressiveDistributed Lag (ARDL) bounds test and the Toda-Yamamoto causality test to scrutinize the long-term and causalrelationships between defense spending and economic growth. The ARDL bounds test reveals a long-term negativecointegration relationship, while the Toda-Yamamoto test indicates a unidirectional causal relationship fromdefense expenditures to GDP at a 10% significance level. These findings affirm the Neoclassical economic theory'spostulation of a negative impact of defense spending on growth. Despite this, the paper argues for the necessity ofsustained defense expenditures in Turkey, given its unique historical and geopolitical context. The study navigatesthrough various theoretical perspectives, notably the Keynesian and neoliberal approaches, and their specificadaptations in defense economics: military Keynesianism and private military services. It critically assesses theseframeworks, integrating their critiques into the analysis. The study contributes to the discourse on defenseeconomics by providing empirical evidence from a critical NATO member, balancing the theoretical debate withpractical insights from Turkey's experience. This dual approach, combining empirical analysis with theoreticalexploration, offers a nuanced understanding of the complex interplay between defense spending and economicgrowth, particularly in geopolitically sensitive regions
(PDF) Economic Impact of Defense Expenditures in Turkey: A Dual-Approach Analysis from 1974 to 2021. Available from: https://www.researchgate.net/publication/377417946_Economic_Impact_of_Defense_Expenditures_in_Turkey_A_Dual-Approach_Analysis_from_1974_to_2021#fullTextFileContent [accessed Dec 29 2024].