Akademik Veri Yönetim Sistemi
Yönetim ve Ekonomi: Celal Bayar Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, cilt.28, sa.2, ss.533-555, 2021 (Hakemli Dergi)
Since Benoit's (1973) work, which argued that defense spending positively affects economic
growth, the effects of defense spending on economic growth have been widely examined, and different
theories have been developed. Linear models are generally used in the study of this topic. Considering
that many economic variables may have a nonlinear generating mechanism, it is found that this is
neglected in studies of defense spending and economic growth. This study examines the relationship
between defense spending and economic growth using the panel threshold model for 17 OECD
countries. According to empirical results, a linear relationship between defense expenditures and
economic growth could not be observed. This result shows that the effect of defense spending on
economic growth can change with the threshold value. The findings suggest that defense spending
above (below) the threshold of 0.599 positively (negatively) influences economic growth.