EFFECT OF GLOBALIZATION ON DEFENSE EXPENDITURES: VAR ANALYSIS FOR TURKEY

Especially in the post-1980 period, with the developments in information and communication technologies in the world, the boundaries between the countries have disappeared and globalization has started to be experienced intensively. This intensity in globalization provides significant advantages to some sectors and has disadvantages for some. In this study, the effects of globalization in economic, political and social fields on defense industry expenditures in Turkey were analyzed within the frame of VAR model by using data from the period of 1974-2015. The results of cointegration indicate a long-term relationship between variables, while the results of causality test show that political and economic globalization is the cause of defense expenditures.