Abstract: This study presents a comprehensive analysis of the influence of defense expenditures on the Gross
Domestic Product (GDP) in Turkey from 1974 to 2021. Defense spending, crucial for national security, often Abstract: This study presents a comprehensive analysis of the influence of defense expenditures on the Gross Abstract: This study presents a comprehensive analysis of the influence of defense expenditures on the Gross
Domestic Product (GDP) in Turkey from 1974 to 2021. Defense spending, crucial for national security, often
diverges from regular civic investments such as education, healthcare, and transportation. The significance of these
higher than the NATO average during 2014-2021. Concurrently, private sector investment in the defense industry
expenditures becomes evident in times of international tension, terrorist threats, and warfare. Globally, defense
budgets 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 yet
has risen, underscoring Turkey's involvement in global defense dynamics. This research adopts the Autoregressive
Distributed Lag (ARDL) bounds test and the Toda-Yamamoto causality test to scrutinize the long-term and causal
relationships between defense spending and economic growth. The ARDL bounds test reveals a long-term negative
cointegration relationship, while the Toda-Yamamoto test indicates a unidirectional causal relationship from
defense expenditures to GDP at a 10% significance level. These findings affirm the Neoclassical economic theory's
postulation of a negative impact of defense spending on growth. Despite this, the paper argues for the necessity of
sustained defense expenditures in Turkey, given its unique historical and geopolitical context. The study navigates
through various theoretical perspectives, notably the Keynesian and neoliberal approaches, and their specific
adaptations in defense economics: military Keynesianism and private military services. It critically assesses these
frameworks, integrating their critiques into the analysis. The study contributes to the discourse on defense
economics by providing empirical evidence from a critical NATO member, balancing the theoretical debate with
practical insights from Turkey's experience. This dual approach, combining empirical analysis with theoretical
exploration, offers a nuanced understanding of the complex interplay between defense spending and economic
growth, particularly in geopolitically sensitive regions
Domestic Product (GDP) in Turkey from 1974 to 2021. Defense spending, crucial for national security, often
diverges from regular civic investments such as education, healthcare, and transportation. The significance of these
expenditures becomes evident in times of international tension, terrorist threats, and warfare. Globally, defense
budgets 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 yet
higher than the NATO average during 2014-2021. Concurrently, private sector investment in the defense industry
has risen, underscoring Turkey's involvement in global defense dynamics. This research adopts the Autoregressive
Distributed Lag (ARDL) bounds test and the Toda-Yamamoto causality test to scrutinize the long-term and causal
relationships between defense spending and economic growth. The ARDL bounds test reveals a long-term negative
cointegration relationship, while the Toda-Yamamoto test indicates a unidirectional causal relationship from
defense expenditures to GDP at a 10% significance level. These findings affirm the Neoclassical economic theory's
postulation of a negative impact of defense spending on growth. Despite this, the paper argues for the necessity of
sustained defense expenditures in Turkey, given its unique historical and geopolitical context. The study navigates
through various theoretical perspectives, notably the Keynesian and neoliberal approaches, and their specific
adaptations in defense economics: military Keynesianism and private military services. It critically assesses these
frameworks, integrating their critiques into the analysis. The study contributes to the discourse on defense
economics by providing empirical evidence from a critical NATO member, balancing the theoretical debate with
practical insights from Turkey's experience. This dual approach, combining empirical analysis with theoretical
exploration, offers a nuanced understanding of the complex interplay between defense spending and economic
growth, particularly in geopolitically sensitive regions
diverges from regular civic investments such as education, healthcare, and transportation. The significance of these
expenditures becomes evident in times of international tension, terrorist threats, and warfare. Globally, defense
budgets 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 yet
higher than the NATO average during 2014-2021. Concurrently, private sector investment in the defense industry
has risen, underscoring Turkey's involvement in global defense dynamics. This research adopts the Autoregressive
Distributed Lag (ARDL) bounds test and the Toda-Yamamoto causality test to scrutinize the long-term and causal
relationships between defense spending and economic growth. The ARDL bounds test reveals a long-term negative
cointegration relationship, while the Toda-Yamamoto test indicates a unidirectional causal relationship from
defense expenditures to GDP at a 10% significance level. These findings affirm the Neoclassical economic theory's
postulation of a negative impact of defense spending on growth. Despite this, the paper argues for the necessity of
sustained defense expenditures in Turkey, given its unique historical and geopolitical context. The study navigates
through various theoretical perspectives, notably the Keynesian and neoliberal approaches, and their specific
adaptations in defense economics: military Keynesianism and private military services. It critically assesses these
frameworks, integrating their critiques into the analysis. The study contributes to the discourse on defense
economics by providing empirical evidence from a critical NATO member, balancing the theoretical debate with
practical insights from Turkey's experience. This dual approach, combining empirical analysis with theoretical
exploration, offers a nuanced understanding of the complex interplay between defense spending and economic
growth, particularly in geopolitically sensitive regions
Abstract: This study presents a comprehensive analysis of the influence of defense expenditures on the Gross
Domestic Product (GDP) in Turkey from 1974 to 2021. Defense spending, crucial for national security, often Abstract: This study presents a comprehensive analysis of the influence of defense expenditures on the Gross Abstract: This study presents a comprehensive analysis of the influence of defense expenditures on the Gross
Domestic Product (GDP) in Turkey from 1974 to 2021. Defense spending, crucial for national security, often
diverges from regular civic investments such as education, healthcare, and transportation. The significance of these
higher than the NATO average during 2014-2021. Concurrently, private sector investment in the defense industry
expenditures becomes evident in times of international tension, terrorist threats, and warfare. Globally, defense
budgets 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 yet
has risen, underscoring Turkey's involvement in global defense dynamics. This research adopts the Autoregressive
Distributed Lag (ARDL) bounds test and the Toda-Yamamoto causality test to scrutinize the long-term and causal
relationships between defense spending and economic growth. The ARDL bounds test reveals a long-term negative
cointegration relationship, while the Toda-Yamamoto test indicates a unidirectional causal relationship from
defense expenditures to GDP at a 10% significance level. These findings affirm the Neoclassical economic theory's
postulation of a negative impact of defense spending on growth. Despite this, the paper argues for the necessity of
sustained defense expenditures in Turkey, given its unique historical and geopolitical context. The study navigates
through various theoretical perspectives, notably the Keynesian and neoliberal approaches, and their specific
adaptations in defense economics: military Keynesianism and private military services. It critically assesses these
frameworks, integrating their critiques into the analysis. The study contributes to the discourse on defense
economics by providing empirical evidence from a critical NATO member, balancing the theoretical debate with
practical insights from Turkey's experience. This dual approach, combining empirical analysis with theoretical
exploration, offers a nuanced understanding of the complex interplay between defense spending and economic
growth, particularly in geopolitically sensitive regions
Domestic Product (GDP) in Turkey from 1974 to 2021. Defense spending, crucial for national security, often
diverges from regular civic investments such as education, healthcare, and transportation. The significance of these
expenditures becomes evident in times of international tension, terrorist threats, and warfare. Globally, defense
budgets 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 yet
higher than the NATO average during 2014-2021. Concurrently, private sector investment in the defense industry
has risen, underscoring Turkey's involvement in global defense dynamics. This research adopts the Autoregressive
Distributed Lag (ARDL) bounds test and the Toda-Yamamoto causality test to scrutinize the long-term and causal
relationships between defense spending and economic growth. The ARDL bounds test reveals a long-term negative
cointegration relationship, while the Toda-Yamamoto test indicates a unidirectional causal relationship from
defense expenditures to GDP at a 10% significance level. These findings affirm the Neoclassical economic theory's
postulation of a negative impact of defense spending on growth. Despite this, the paper argues for the necessity of
sustained defense expenditures in Turkey, given its unique historical and geopolitical context. The study navigates
through various theoretical perspectives, notably the Keynesian and neoliberal approaches, and their specific
adaptations in defense economics: military Keynesianism and private military services. It critically assesses these
frameworks, integrating their critiques into the analysis. The study contributes to the discourse on defense
economics by providing empirical evidence from a critical NATO member, balancing the theoretical debate with
practical insights from Turkey's experience. This dual approach, combining empirical analysis with theoretical
exploration, offers a nuanced understanding of the complex interplay between defense spending and economic
growth, particularly in geopolitically sensitive regions
diverges from regular civic investments such as education, healthcare, and transportation. The significance of these
expenditures becomes evident in times of international tension, terrorist threats, and warfare. Globally, defense
budgets 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 yet
higher than the NATO average during 2014-2021. Concurrently, private sector investment in the defense industry
has risen, underscoring Turkey's involvement in global defense dynamics. This research adopts the Autoregressive
Distributed Lag (ARDL) bounds test and the Toda-Yamamoto causality test to scrutinize the long-term and causal
relationships between defense spending and economic growth. The ARDL bounds test reveals a long-term negative
cointegration relationship, while the Toda-Yamamoto test indicates a unidirectional causal relationship from
defense expenditures to GDP at a 10% significance level. These findings affirm the Neoclassical economic theory's
postulation of a negative impact of defense spending on growth. Despite this, the paper argues for the necessity of
sustained defense expenditures in Turkey, given its unique historical and geopolitical context. The study navigates
through various theoretical perspectives, notably the Keynesian and neoliberal approaches, and their specific
adaptations in defense economics: military Keynesianism and private military services. It critically assesses these
frameworks, integrating their critiques into the analysis. The study contributes to the discourse on defense
economics by providing empirical evidence from a critical NATO member, balancing the theoretical debate with
practical insights from Turkey's experience. This dual approach, combining empirical analysis with theoretical
exploration, offers a nuanced understanding of the complex interplay between defense spending and economic
growth, particularly in geopolitically sensitive regions