Defense expenditures economic growth relationship: Religious perspective focus study

The effect of the defense industry on economic growth in the context of public expenditure in the literature is particularly concentrated in the aftermath of the terrorist activities of September 11, America and Paris in 2015-2017. According to the methodology used in country-based and panel studies, different results are obtained. However, the recent Western media attempted to show the terrorism which is a religion of peace and tranquility with the claim that these terrorist activities are made religion oriented. In this study, for the first time in the literature, the relationship between defence expenditure and economic growth was examined by dividing countries into 3 groups according to the religious perspective (Muslim, Christian and Jewish) in the period 1990-2017. Both FMOLS and DOLS test results used in the study show that defense expenditures in Christian countries have a positive effect on economic growth in the long term, while they do not have a statistically significant effect on Muslim countries. The predicted results of Israel, which is the only Jewish country, reveal long-term defense spending in reducing economic growth. Keywords: Defense, expenditure, economics, religion