The effects of defense expenditure and the place of Turkish defense industry in the Turkish economy

The two world wars that took place in the 20th century and the "Cold War" period after that which occupied the world public opinion until the end of 1990s has left its place to the next centuries' new polarization which came with the 11 September events. As much as this case affecting the whole world, Turkey's geopolitical position too, have revealed a new circumstance where political and militaristic discomfort escalated from time to time. In such an environment where security concerns have become much sophisticated, in order to secure its own sovereign rights and its nations life and property safety, countries have increased their defense investment and this brought forth the different effects on the economy's other components. For developed countries, bearing in mind that defense expenditures were obliged to increase, their gained innovations from the defense industry converted into economic power which in return have become a competitive advantage erasing the probable negative effects on the economy. This advantage is not only related to economical benefits but also is important for the essential power balance. In this respect, Turkish Defense Industry in the recent years has achieved significant production breakthroughs and has formed a strong structuring with its associated subsectors. In this study emphasizing the historical construction and the development of the defense spending, examining the effects of defense expenditures on economic data in empirical and theoretical analysis and starting with the Turkish Defense Industry's improvement these facts were discussed in Turkey's core.