Özet:

This study aims to investigate the critical issue in determining the effect of defense expenditures on economic performance. In this research, the relationship between economic performance and defense expenditures is discussed using the data from the period 1993 to 2019 for 32 countries that are members of the Organization for Economic Cooperation and Development, according to their distribution in America, Asia–Oceania, and Europe. The analyses are based on the Bootstrap Effectiveness and Malmquist Total Factor Productivity Index calculations, which examine two cases with and without defense expenditure. The findings show that the economic performance values calculated by including defense expenditures are higher than the performance values calculated without defense expenditures. In this respect, the findings are in line with the Keynesian Approach, which argues that defense expenditures positively affect economic performance. In addition, the result showed that America and Europe regions have higher performance values than Asia–Oceania region. In this respect, it draws attention that defense expenditures should be evaluated regionally.

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