19-THE ENCOURAGEMENT OF ARMS EXPORT IN DEVELOPING COUNTRIES: CAUSALITY ANALYSIS BETWEEN DEFENSE EXPORT, GDP AND DEFENSE EXPENDITURE IN TURKIYE

THE ENCOURAGEMENT OF ARMS EXPORT IN
DEVELOPING COUNTRIES: CAUSALITY ANALYSIS
BETWEEN DEFENSE EXPORT, GDP AND DEFENSE
EXPENDITURE IN TURKIYE

Meliha ENER*, Nazan YELKIKALAN**, Selen SAVAŞKAN***

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*Department of Economics, Biga Faculty of Economics and Administrative
Sciences, Onsekiz Mart University of Çanakkale, Çanakkale, Turkiye
**Department of Business Administration,Biga Faculty of Economics and
Administrative Sciences, Onsekiz Mart University of Çanakkale, Çanakkale,
Turkiye
***Biga Faculty of Economics and Administrative Sciences, Onsekiz Mart
University of Çanakkale, Çanakkale, Turkiye

DOI: 10.64404/JoDRM.2025.2.19

Issue: Vol. 16, Issue 2 (31) / 2025

Abstract

The aim of this study to investigate the the role of defense export in developing
countries and also its effects onmilitary expenditure andgross domestic product
(GDP) in Turkiye during the period 2001-2024. In addition to theoretical approach,
an empirical study was also used in the causality analysis between variables.A Toda
Yamamoto granger causality test was performed between defence export, GDP and
military expenditure.We demonstrated that increased GDP can facilitate defense
export and defense expenditure may have positive effects on economic development in
long run. Turkish military production and development activities have accomplished
self reliance to proceed the higher amount of defence export.The greater demand
for Turkish higher technology military products should enable Turkiye to increase
defence export rapidly in near future. Conclusively,developing countries should
reinforce their defense industries to decrease technology dependence and develop
longstanding sustainable defense export to lower financial burden of military
expenditure.

Key words:

defenseexport, arms trade, defence ındustry, defense expenditure,
time series analysis, economic growth, Toda Yamamoto Test.

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