An empirical analysis on macroeconomic variables affecting defense expenditures in selected countries (2000-2018)

The defense industry is a sector that is vital for the national and international security of a country and has a multi-faceted structure that cannot be explained solely by production. The aim of this study is to analyze the relationship between defense spending and economic growth, R&D, trade volume, employment, and population in selected countries. Between the years 2000-2018 In this study, the United States, Austria, Brazil, China, France, South Korea, India, Italy, Japan, Canada, Germany, Turkey, Russia and defense spending to Saudi Arabia with economic growth, R & D spending, The relationship between trade volume and employment variables is analyzed. First of all, cross section dependency test was conducted. Afterwards, CADF Unit Root Test, Delta Test and Dumitrescu Hurlin Causality Test and finally AMG Coefficient estimation were made. According to the causality test results, it was determined that there is a one-way relationship from economic growth to defense expenditures, from employment to defense expenditures. According to the results of AMG, the negative between defense spending and R&D spending and trade volume, defense Key Words: Economic Growth, R&D, Trade Volume, Employment, Population Defense Expenditures. Keywords: Economic Growth, R&D, Trade Volume, Employment, Population Defense Spending