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

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.