The Relationship of Defence Expenditures and Economic Growth: Examples of Turkey and China (2000-2020)
The Relationship of Defence Expenditures and Economic Growth: Examples of Turkey and China (2000-2020)

Summary/Abstract: Defence expenditures are essential components of the countries’ financial strategies to ensure national security. Structural differences, geopolitical positions, and political reasons impact defence expenditures. However, since these variables have a different impact on each country’s economy, a consensus cannot be reached on the relationship between defence expenditures and economic growth. Therefore, assessing the effect of defence expenditures on economic growth can provide various insights for each country. In this article, the relationship between the defence expenditures and the economic growth of China and Turkey, the two countries displaying the most significant increase in defence expenditures in the world between 2000 and 2020, was studied comparatively by trend analysis and graphics. The analysis results show that China and Turkey are different from each other. While China has stable economic growth and defence expenditures, Turkey has a more volatile structure. Therefore, while there is a correlation between defence expenditures and economic growth in China, it is concluded that this is not the case for Turkey. The findings are of a quality that will increase awareness among policymakers and practitioners.

• Details
• Contents