Asymmetric relationship between defense expenditures and economic growth: Evidence from Türkiye

The aim of this thesis is to determine the positives and negatives of defense expenditures on economic growth. For this purpose, the NARDL method was used in the study. For Türkiye, annual data on defense expenditures, investments and employment for the period 1988-2021 were used. With the NARDL method, long-term positive and negative effects were separated. NARDL method results show that there is an asymmetric relationship between defense expenditures and economic growth in both the long and short term. It has been shown that the increase in defense expenditures has a positive effect on economic growth, while the decrease in expenditures has a negative effect. According to the results obtained, it can be said that the negative effect on defense expenditures is more effective on economic growth.