Özet:

After the Second World War, especially during the Cold War, the defence spending increased worldwide and the defence spending rose to the highest levels at the end of the 1980s. In the subsequent period, increasing terror attacks and the countries have revised national security policies. Turkey is located in the Middle East where wars are intense and therefore the presence of a strong army is vital for Turkey. The need for terror events that have lasted for many years, because there is a significant force in the region, the proportion of defense spending in the Turkish economy is quite high. The relationship between defence spending and economic growth in the study is studied using annual data in the period 1968-2017. The short-term and long-term causality relationship between the relevant variables in the analysis was studied using the causality test in the frequency field developed by Breitung and Candelon (2006). According to the analysis, a one-way causal relationship from defense spending to economic growth in the Turkish economy has been identified. The impact-effect analysis results show that the GDP’s response to an unexpected increase in defense spending is negative and statistically meaningful over the long term.