Reviewing the Defense Spendings’ Effects on Foreign Trade of Turkey

Abstract

In order to ensure military security in a country, defense spending must be done for having a trained army with modern weapon systems. The effects of defense spending, which are not completed once and must be made continuously, are inevitable. This study sought to answer the question of how to influence Turkey's foreign trade balance in defense spending in the years 2000-2018. The Granger causality tests in the E-Views, a Windows-based econometric software program have been used. Defense spending has emerged from the analysis did not affect the foreign trade balance in Turkey. It is observed that the gross domestic product has an impact on the export and import of defense industry products.

Keywords

• public expenditures
• defense spending
• foreign trade balance