Analysis of the relationship between military spending and economic growth: Example of an applied study in Turkey

The purpose of this study is to analyze the relationship between military spending and economic growth in Turkey. Basic concepts and definitions about the military spending and defence services, military spending in other countries, military spending and its financial resourcing in Turkey, economic consequences of military spending, different views on military spending and economic growth are covered in this study. In the research section, Granger causality test is applied on the data of economic growth rates and military spending figures over the years 1987 - 2012 in Turkey. The results of the Granger causality test support the view that the military spending is a driver of economic growth and it boosts economy.