Özet:

The study involves the examination of the relationship between military expenditures and economic growth within Developing Eight (D-8) Organization for Economic Cooperation, which was formed under the leadership of Turkey in 1997, from 1997 to 2018 by using panel data method. Military spending, which is an item of public spending, is also very important for economic cooperation organizations in parallel with the evolving global economy. In this context, the economic growth of D-8 countries, which are all Muslim countries, was analyzed through the balanced panel analysis model using the variables of military expenditures, fixed capital formation, openness rate and the unemployment rate in the study. According to the findings obtained from the analysis, it was determined that although the share of military expenditures in GDP is not statistically significant, there was a negative impact on growth if the share of military expenditures in imports increases. It is possible to explain this result with economically foreign dependency. As a matter of fact, in case the investment resources are directed towards military expenditures and these expenditures are imported goods, the growth can be affected adversely. Similarly, the increase in the openness ratio led by the fact that imports are relatively more than exports may also affect the economic growth negatively. In addition, the increases in fixed capital formation and unemployment rate decreases are expected to have positive effects on growth for developing countries.

Anahtar Kelimeler: