Abstract:

In the process, from the centralists to today, the military spending was considered necessary for the continuation of economies and states. The other thing that is common in almost all economies is that investment spending brings economic growth together. The aim of the study is to analyze the relationship between public investment expenditure, private sector investment expenditure and defense expenditure with economic growth. In this context, the study used annual data from the period 1982-2017 to analyze the impact of investment spending and military spending on economic growth. The variables are primarily fixed with the help of the Generalized Dickey Fuller Unit Root Test. Investment expenditure is included as separate variables as the public and private sector and the relationship between the ARDL border test and the variables has been studied. It is believed that in terms of the established model, the work contributes to literature. According to the study, while the positive impact of investment spending on economic growth is present, military spending has a negative and statistically significant impact on economic growth. Therefore, there is a positive relationship between defense spending and economic growth, the argument of the Benoit Hypothesis is not applicable in Turkey.

Abstract:

From the mercantilists who were the first economics schools to the day-to-day military spending was deemed necessary for the continuation of the economies and states. Common issue for almost all economic schools is that investment spending is accompanied by economic growth. The aim of this study is to analyze the relationship between public investment expenditures, private sector investment expenditures and defense expenditures with economic growth. In this context, annual expenditures for the 1982-2017 period were used to analyze the effect of investment expenditures and military spending on economic growth. The variables were first stabilized with the help of the Augmented Dickey Fuller Unit Root Test. The relationship between the variables is investigated by including the investment expenditures as separate variables as public and private sectors using ARDL boundary test. It is thought that the study contributes to the literature in terms of the model. According to the results of the study; while investment expenditures have a positive effect on economic growth, military spending has a negative and statistically significant effect on economic growth. Therefore, Benoit Hypothesis which is argue that there is a positive relationship between economic growth and defense spending, is not valid in Turkey

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