OP1

a. Objective:

.. The main focus of the paper was to investigate the determinants of Turkish defence expenditure. The study aimed to
fill a gap in the defence economics literature by examining the factors that influence the level of military spending in
Turkey.

.. The objective of the article is to investigate the determinants of Turkish defense expenditure and fill a gap in the
defense economics literature. The study aims to understand the factors that influence defense spending in Turkey.

..

.. The article is trying to understand the economic relationship between Turkish military expenditure and various factors
such as the defence expenditure of allies (NATO) and enemies (Greece), trade balance, non-defence government
spending, population, and the impact of external conflicts and internal security requirements. The goal is to determine
the main determinants of Turkish defence expenditure and analyze the short-run and long-run effects of these factors.

.. The study examined several determinants of Turkish defense expenditure, including:

1. NATO's defense spending: The study investigated the impact of NATO's defense spending on Turkish defense
expenditure.

2. Greece's defense spending: The study examined the relationship between Greece's defense spending and Turkish
defense expenditure.

3. Security considerations: The study also considered the influence of security considerations on Turkish defense
expenditure.

SOURCES:
- Page 2: "The findings suggest that Turkish defence spending is determined by NATO’s defence spending, Greece’s
defence spending and some security considerations."

b. Methods:

.. The researchers used the following variables for their research on the demand for military expenditure in Turkey:

- m: Share of Turkish defence spending in GDP (1987 constant prices)

- y: Growth rate of Turkish GDP (1987 constant prices)
- n: Average defence burden of NATO (D=Y)
- b: Turkish balance of trade (1987 constant prices) in GDP [(X-Y)=Y]
- gr: Greek defence burden
- ng: Share of non-defence government expenditure (Government spending-defence spending) in GDP
- pop: Turkish population
- cyp: Cyprus conflict dummy variable (takes value of one for the year 1974 and zero elsewhere)
- trend: Linear trend (1949-1998)

SOURCES:
- Page 5: Data Sources and Definition of Variables

.. The researchers used various data sources to analyze the effects of the determinants of demand on Turkish defense
expenditure. The defense expenditure data for Turkey, Greece, and NATO were obtained from various issues of SIPRI
yearbooks. GDP, GDP deflators, trade balance, and government consumption data were obtained from various issues of
IMF/IFS yearbooks. Population data were taken from the State Planning Organization (SPO) of Turkey. The variables used
in the analysis were the share of Turkish defense spending in GDP, the growth rate of Turkish GDP, the average defense
burden of NATO, the Turkish balance of trade in GDP, the Greek defense burden, the share of non-defense government
expenditure in GDP, the Turkish population, a Cyprus conflict dummy variable, and a linear trend.

SOURCES:
- Page 5: Data Sources and Definition of Variables

.. The researchers obtained the data for their analysis on the effects of the determinants of demand on Turkish defense
expenditure from various issues of SIPRI yearbooks for defense expenditure data of Turkey, Greece, and NATO. They also
obtained GDP, GDP deflators, trade balance, and government consumption data from various issues of IMF/IFS
yearbooks. Population data was taken from the State Planning Organization (SPO) of Turkey.

SOURCES:
- Page 5: "Data Sources and Definition of Variables"

.. In the paper, the authors utilized the autoregressive distributed lag approach to cointegration (ARDL) to model and
estimate the demand for Turkish defense expenditure. This approach allows for inferences on long-run estimates and can
be applied regardless of the stationary properties of the variables in the sample. The ARDL approach to cointegration was
used to analyze the relationship between Turkish defense expenditure and variables such as NATO's defense spending,
Greece's defense spending, and various security considerations.

.. In this paper, the authors utilized econometric methods to analyze the relationship between Turkish defense
expenditure and various economic variables. Specifically, they employed the Autoregressive Distributed Lag (ARDL)
approach, which is a widely used method for estimating long-run relationships in econometrics.

The ARDL approach involves two steps. In the first step, the authors estimated the long-run function using the levels of
the stationary series. This allowed them to examine the long-run relationship between defense expenditure and the
explanatory variables. In the second step, they incorporated lagged residuals from the first step as an error correction
term in a dynamic error correction mechanism formulation. This captured the short-run dynamics and allowed for the
analysis of the short-run relationship between the variables.

By using the ARDL approach, the authors were able to examine the impact of variables such as GDP, NATO spending,
trade balance, rival country's defense spending, non-defense government spending, population, and the Cyprus conflict
on Turkish defense expenditure.

Overall, the authors employed econometric techniques to estimate the long-run and short-run relationships between
defense expenditure and various economic variables, providing insights into the determinants of Turkish defense
expenditure.

SOURCES:
- Page 4: "Hartley and Sandler (1995: 213) argue that if the variables are used in levels, the nature of the demand for
military expenditure is better explained."
- Page 6: "The error correction model associated with this model can be obtained by writing Eq. (3) in terms of lagged
levels and the first differences of yt, x1t; x2t; :; :; :; xkt; a0, and a1, as follows:"
- Page 7: "The first step in the ARDL procedure outlined by Pesaran and Shin (1999) is to test for the long-run significance
of the dependent variables, by computing the F-statistic for testing the null hypothesis of no long-run relationship."
- Page 5: "Even though these methods are generally employed in the literature, they do have shortcomings. System
estimation procedures attract a lot of criticism concerning the endogenous-exogenous division of variables and the
assumption of zero restrictions, which are imposed in order to achieve the identification of the model."

.. The rationale behind using the autoregressive distributed lag (ARDL) approach to cointegration in this study is that it
allows for the estimation of the long-run relationship between variables, regardless of their stationary properties. The
ARDL approach is advantageous because it does not require prior assumptions about the endogenous-exogenous
division of variables or impose zero restrictions. It also allows for inferences on long-run estimates, which is not possible
with alternative cointegration procedures. Additionally, the ARDL approach can handle a large number of variables in the
model, making it suitable for analyzing complex relationships.

SOURCES:
- Page 5: "Alternatively, the demand for defence expenditure functions can be examined in a cointegration framework
using Engle-Granger two-step method (Chletsos and Kollias, 1995). When the non-stationary variables are cointegrated,
there may be some adjustment process which prevents the errors in the long-run relationship becoming larger and
larger. Engle and Granger (1987) have shown that any cointegrated series have an error correction representation which
incorporates both the economic theory to the long-run relationship between the variables and short-run disequilibrium
behaviour. They proposed a two-step procedure where the first step is to estimate the long-run function using the levels
of the stationary series. In the second step, the lagged residuals from this regression are entered as error correction term
in a dynamic error correction mechanism formulation, which captures the short-run dynamics."
- Page 6: "Bearing in mind the problems associated with alternative modelling methodologies, the autoregressive
distributed lag approach to cointegration (ARDL) following the methodology outlined in Pesaran and Shin (1999) is
employed in this study. The main advantage of this procedure is that it can be applied regardless of the stationary
properties of the variables in the sample and allows for inferences on long-run estimates, which is not possible under
alternative cointegration procedures. Moreover, the number of variables in the model may be large, contrary to the VAR
models."

.. The autoregressive distributed lag (ARDL) approach to cointegration was found to be effective in analyzing the
determinants of Turkish defense expenditure. This approach allows for inferences on long-run estimates and can be
applied regardless of the stationary properties of the variables in the sample. It overcomes the limitations of alternative
cointegration procedures and allows for the inclusion of a large number of variables in the model. By using the ARDL
approach, the study was able to identify the factors that influence Turkish defense spending, such as NATO's defense
spending, Greece's defense spending, and some security considerations.

SOURCES:
- Page 6: "Bearing in mind the problems associated with alternative modelling methodologies, the autoregressive
distributed lag approach to cointegration (ARDL) following the methodology outlined in Pesaran and Shin (1999) is
employed in this study. The main advantage of this procedure is that it can be applied regardless of the stationary
properties of the variables in the sample and allows for inferences on long-run estimates, which is not possible under
alternative cointegration procedures. Moreover, the number of variables in the model may be large, contrary to the VAR
models."
- Page 9: "The results suggest that Turkish defence expenditure is mainly determined by the defence expenditure of the
allies (NATO) and that of enemies (Greece) in the short run. However, Greek defence spending does not have any
significant effect on Turkish demand for defence spending in the long run, contrary to the spending of NATO. These
results suggest that Turkey is in the follower mode considering the NATO defence expenditure and there does not seem
to be an arms race or rivalry between Turkey and Greece in the long-run."

c. Results:

.. The findings of the paper suggest that the demand for Turkish defense expenditure is mainly determined by the
defense expenditure of NATO allies and Greece in the short run. However, Greek defense spending does not have a
significant effect on Turkish defense spending in the long run, unlike the spending of NATO. This indicates that Turkey is in
a follower mode when it comes to NATO defense expenditure, and there does not seem to be an arms race or rivalry
between Turkey and Greece in the long run. However, in the short run, there may be an arms race between the two
countries due to the Cyprus conflict. Additionally, the short-run estimates show a significant and high adjustment
coefficient, indicating that the economy quickly returns to its equilibrium level once shocked.

SOURCES:
- Page 9: "The results suggest that Turkish defence expenditure is mainly determined by the defence expenditure of the
allies (NATO) and that of enemies (Greece) in the short run. However, Greek defence spending does not have any
significant effect on Turkish demand for defence spending in the long run, contrary to the spending of NATO."
- Page 9: "These results suggest that Turkey is in the follower mode considering the NATO defence expenditure and there
does not seem to be an arms race or rivalry between Turkey and Greece in the long-run. However, in the short-run, there
may be an arms race between the two countries due to the Cyprus conflict."

.. The results of the study suggest that the demand for Turkish defense expenditure is mainly determined by the defense
expenditure of NATO allies and Greece in the short run. However, Greek defense spending does not have a significant
effect on Turkish defense spending in the long run, unlike the spending of NATO. This indicates that Turkey is in a follower
mode when it comes to NATO defense expenditure, and there does not seem to be an arms race or rivalry between
Turkey and Greece in the long run. However, in the short run, there may be an arms race between the two countries due
to the Cyprus conflict. Additionally, the study found that Turkish defense spending is influenced by some security
considerations.

.. In the short run, the determinants of Turkish defense spending include the previous year's defense burden, the change
in income (GDP), the change in NATO's defense spending, the change in domestic bureaucratic and budgetary factors,
the change in the growth rate of Turkish GNP, the change in non-defense government spending, the change in
population, the change in political and security dummy variables, the change in defense burden of Greece, and the
change in the trend.

In the long run, the main determinants of Turkish defense spending are the defense expenditure of NATO and the
defense expenditure of Greece. However, while the defense spending of NATO has a significant and positive effect on
Turkish defense spending in the long run, the defense spending of Greece does not have a significant impact.

SOURCES:
- Page 7: "The regression results are given in Table II, where the error correction (ECM) representation of the short-run
estimates and the implied long-run estimates are presented."
- Page 8: "The estimated long-run coefficients are presented in Table III. All long run coefficients have the expected sign,
except that of growth rate of Turkish GNP. It has a negative sign indicating that the share of military spending in Turkey
decreases as the growth rate increases in the long-run."

.. According to the study, the greatest determinant of Turkish defense spending in the long run is the defense
expenditure of NATO. This suggests that Turkey follows the defense spending patterns of its NATO allies. However, in the
short run, the study found that Greek defense spending has a significant impact on Turkish defense spending. This
indicates that there may be an arms race or rivalry between Turkey and Greece in the short term, possibly due to
conflicts like the Cyprus conflict.

SOURCES:
- Page 4: "The findings of this study indicate that Turkish defence expenditure was strongly affected by its NATO
membership, adopting a follower mode. Greek defence spending also positively affects Turkish defence spending in the
long run."
- Page 9: "The results suggest that Turkish defence expenditure is mainly determined by the defence expenditure of the
allies (NATO) and that of enemies (Greece) in the short run. However Greek defence spending does not have any
significant effect on Turkish demand for defence spending in the long run, contrary to the spending of NATO."

d. Application of the article in the Philippine Setting:

How can the results of this article be applied to the Philippine Situation?

The results of this article on the determinants of Turkish defense expenditure may provide some insights that could be
applied to the Philippine situation. While the specific context and factors influencing defense expenditure may differ
between Turkey and the Philippines, there are some general considerations that could be relevant.
1. External Security Concerns: Like Turkey, the Philippines faces various external security challenges, such as territorial
disputes and regional tensions. Therefore, it is important to consider the impact of these external conflicts on defense
expenditure.

2. Internal Security Considerations: Both Turkey and the Philippines have dealt with internal security issues, such as
insurgencies and terrorism. Understanding the requirements of internal security and the resources needed to address
these challenges can help in determining defense expenditure.

3. Budgetary and Resource Constraints: The article highlights the importance of budgetary and resource constraints in
determining defense expenditure. This is applicable to the Philippines as well, as the government needs to allocate
resources efficiently and effectively across various sectors, including defense.

4. Role of Allies and Neighboring Countries: The article emphasizes the influence of defense spending by allies and
neighboring countries. In the case of the Philippines, considering the defense expenditure of its allies, such as the United
States, and neighboring countries, such as China, could provide insights into the dynamics of defense expenditure.

It is important to note that the specific determinants of defense expenditure in the Philippines may differ from those in
Turkey. Therefore, further research and analysis specific to the Philippine context would be necessary to draw more
accurate conclusions.

SOURCES:
- Page 9: This paper presents an analysis of the determinants of the demand for Turkish military expenditure the time
period 1949–1998, employing ARDL model approach to cointegration.
- Page 3: There are a number of models explaining the determinants of defence expenditure.1 Ball (1988) argued that in
the developing countries external security issues for defence are not the main concern, but internal security
considerations are as important as external security considerations.

e. Personal analysis and reaction to the paper: What did you learn from the article?

.. From the article, it is learned that Turkey allocates a significant portion of its resources for defense, despite being a
developing country with poor economic performance. In 1998, Turkey's defense expenditure reached 3.3% of GDP, which
was higher than the NATO average of 2.1%. The determinants of Turkish defense spending have not been extensively
investigated, and this study aims to fill that gap in the defense economics literature. The article discusses various models
explaining the determinants of defense expenditure and presents empirical results based on the ARDL approach to
cointegration.
OP2

a. Objective:
What was the paper was trying to look at?
The paper titled "The Demand for Turkish Defence Expenditure" aimed to analyze the determinants of the demand for
Turkish military expenditure from 1949 to 1998, using the ARDL model approach to cointegration.

The paper aimed to investigate the determinants of Turkish defense expenditure. It sought to fill a gap in the defense
economics literature by examining the factors that influence Turkish defense spending.

The paper was trying to examine the determinants of the demand for Turkish defence expenditure. It analyzed the
factors that influence Turkey's defence spending from the period 1949 to 1998.

The paper "The Demand for Turkish Defence Expenditure" by Selami Sezgin and Jülide Yildirim is an academic research
paper that aims to investigate the factors influencing the demand for defense expenditure in Turkey. It seeks to
understand why and how much Turkey allocates to its defense budget, taking into account a range of economic, political,
and security-related factors.

What do you think is the objective of the article?

The objective of the article is to identify the factors that determine the demand for Turkish military expenditure and to
analyze the relationship between these factors and military spending. The article aims to provide insights into the
economic impact of military expenditure on Turkey's economy and to inform policymakers about the factors that
influence the demand for military spending.

The objective of the article is to examine the determinants of Turkish defense expenditure and fill a gap in the defense
economics literature by providing insights into the factors that influence Turkish defense spending.

The objective of the article "The Demand for Turkish Defence Expenditure" by Selami Sezgin and Jülide Yildirim, based on
its title and the context of defense economics, is likely to:

Examine Factors Influencing Turkish Defense Expenditure: The primary goal of the article is to investigate and analyze the
various factors that influence the level of defense expenditure in Turkey. These factors may include economic, political,
and security-related variables.

Identify Determinants of Defense Budget Allocations: The authors likely aim to identify the key drivers or determinants of
defense budget decisions in Turkey. This involves understanding why the Turkish government allocates specific amounts
of its budget to defense spending.

Contribute to the Field of Defense Economics: The article is likely intended to contribute to the academic field of defense
economics by providing insights into the specific case of Turkish defense expenditure. It may help in advancing our
understanding of the complex relationship between a country's economic, political, and security considerations and its
military budget.

Inform Policy and Decision-Making: Research in this area often has practical applications. The findings of the article may
be relevant for policymakers and government officials, helping them make more informed decisions about defense
budget allocation and resource management.

To get a precise understanding of the objectives and findings of the article, it's best to read the full paper, as I can only
provide a general overview based on the title and typical goals of research in this area.

What is the difference of the defense demand trend of Turkey compared to the other countries?
The article does not provide a direct comparison of the defense demand trend of Turkey with other countries. However,
it does mention that the demand for Turkish defense expenditure can be modeled based on factors such as income,
population, and external security concerns. The article also notes that Greek defense spending positively affects Turkish
defense spending in the long run.

The defense demand trend of Turkey, like that of any other country, is influenced by a complex interplay of economic,
political, and security-related factors. The specific differences between Turkey's defense demand trend and that of other
countries can vary significantly and depend on a range of factors. Some potential differences or unique aspects of
Turkey's defense demand trend, in comparison to other countries, may include:

1. **Regional Security Environment:** Turkey's geographic location places it in a unique position with proximity to
several conflict-prone regions, including the Middle East and the Caucasus. The security dynamics in these regions can
significantly impact Turkey's defense demand trend and lead to specific security challenges and requirements.

2. **Historical Context:** Turkey has a rich history of military conflicts, alliances, and geopolitical shifts, which can shape
its defense policies and budget decisions differently from other countries. Historical factors often play a crucial role in
understanding a nation's defense posture.

3. **Internal and External Threats:** The perceived threats to a country can differ widely. For Turkey, threats from both
internal and external sources, such as conflicts with non-state actors or regional geopolitical tensions, can lead to unique
defense priorities.

4. **Political Factors:** The influence of political leaders and their strategic priorities can vary from one country to
another. Turkey's political landscape, its domestic policies, and international alignments can shape its defense demand
trend differently.

5. **Economic Considerations:** Turkey's economic conditions, fiscal capacity, and resource allocation may not be
directly comparable to those of other countries. Economic factors can have a distinct impact on defense expenditure
trends.

6. **Alliances and International Commitments:** Turkey's membership in various international organizations, alliances
like NATO, and its role in regional security cooperation can lead to specific defense demands and obligations that may
differ from those of other nations.

7. **Technology and Industry:** The country's defense industry capabilities and its reliance on domestic production can
affect its defense demand trend. Turkey's efforts to develop indigenous defense technologies can influence its budget
allocation.

8. **Public Opinion:** The perceptions and preferences of the Turkish population regarding defense and military
spending can shape the government's approach to defense demand, potentially differing from public opinion in other
countries.

It's important to note that defense demand trends can change over time due to evolving geopolitical circumstances,
shifts in leadership, economic developments, and changes in threat perceptions. To understand the specific differences
between Turkey's defense demand trend and that of other countries, one would need to conduct a comprehensive
analysis and comparison of these factors within a particular time frame.

The article suggests that Turkey's defense spending is mainly determined by the defense expenditure of its allies (NATO)
and its rival country (Greece). It is found that Turkey adopts a follower mode in terms of NATO defense spending,
indicating that it aligns its defense expenditure with that of its allies. In contrast, there is no significant long-term effect
of Greek defense spending on Turkish defense demand. This implies that Turkey does not engage in an arms race or
rivalry with Greece in the long run. However, in the short run, there may be an arms race between the two countries due
to the Cyprus conflict. Overall, Turkey's defense demand trend is influenced by its alliance with NATO and security
considerations rather than engaging in direct rivalry with other countries.

According to the article, the defence demand trend of Turkey is different compared to other countries in several aspects.

Firstly, Turkey has a high defence burden compared to other NATO countries. In 1998, Turkey's defence expenditure
accounted for 3.3% of its GDP, while the NATO average was 2.1%. This indicates that Turkey allocates a significant portion
of its resources for defence despite its developing country status and poor economic performance.

Secondly, Turkey is one of the leading arms importing countries in the world, which indicates its focus on military
equipment and investment in defence capabilities.

Thirdly, the study suggests that Turkey's defence spending is influenced by its membership in NATO. Turkey is considered
to be in a follower mode, meaning its defence expenditure is largely determined by the defence spending of its allies.

Lastly, the article mentions that there is no evidence of an arms race or rivalry between Turkey and Greece in the long
run, although there may be a short-term arms race due to conflicts like the Cyprus issue. This suggests that the defence
demand trend of Turkey is more influenced by security considerations and collaboration within NATO rather than direct
rivalry with neighboring countries.

What economic relationship are they trying to understand?

The article aims to understand the economic relationship between Turkish military expenditure and its determinants,
such as income, population, external security concerns, and NATO's spending. The authors use the ARDL model approach
to cointegration to analyze the long-run and short-run relationships between these variables and military spending. The
article also discusses the theoretical relationship between GDP and military spending, as higher income levels tend to
generate higher security spending.

The authors of the article are trying to understand the determinants of the demand for Turkish defense expenditure.
They aim to identify the factors that influence Turkish defense spending and analyze the economic relationship between
these factors and defense expenditure.

In the paper "The Demand for Turkish Defence Expenditure" by Selami Sezgin and Jülide Yildirim, the authors are likely
trying to understand the economic relationship between various economic factors and Turkish defense expenditure. The
specific economic relationship they are investigating may include:

1. **Economic Conditions and Defense Spending:** The authors may be examining how the overall economic conditions
in Turkey, such as GDP growth, inflation, and fiscal capacity, influence the country's defense expenditure. This involves
assessing how the economic well-being of a nation impacts its ability to allocate resources to the defense sector.

2. **Opportunity Costs:** The authors might explore the economic concept of opportunity costs, which refers to the
trade-offs involved in allocating resources. They could investigate how increased defense spending affects other sectors
of the economy, such as healthcare, education, or infrastructure, and the economic implications of these trade-offs.

3. **Budget Constraints:** The authors may examine how Turkey's budget constraints and fiscal policies affect the level
of defense expenditure. This can include assessing the government's ability to finance defense-related expenses while
maintaining fiscal stability.

4. **Economic Growth and Defense Investment:** The paper may investigate the potential relationship between
defense spending and economic growth. Scholars often study whether increased defense expenditure can stimulate
economic activity or if it diverts resources away from more productive sectors.
5. **Defense Industry Impact:** The authors might assess how the defense industry in Turkey influences the national
economy. A strong defense industry can create jobs and stimulate economic growth, and the authors may investigate the
economic implications of supporting domestic defense production.

6. **Economic Shocks and Defense Spending:** The paper could consider how external economic shocks, such as
recessions or currency fluctuations, impact defense expenditure. Economic crises can lead to changes in government
priorities and budget allocations.

The economic relationship being studied is likely to be multifaceted and complex. The authors may use quantitative data
and econometric techniques to analyze these economic factors and their impact on Turkey's defense budget. By
understanding these economic relationships, the research aims to provide insights into the drivers of defense
expenditure and its implications for the Turkish economy.

The authors are trying to understand the determinants of the demand for Turkish military expenditure. They are
examining the economic relationships between variables such as national income, defense expenditure of allies, defense
expenditure of enemies, trade balance, and non-defense government spending to assess their impact on Turkish defense
spending.

What determinants of the demand of Turkish Defense did they look at?

The article examines several determinants of the demand for Turkish defense expenditure, including income, population,
external security concerns, and NATO's spending. The authors use the ARDL model approach to cointegration to analyze
the long-run and short-run relationships between these variables and military spending. The findings suggest that
Turkish defense spending is determined by NATO’s defense spending, Greece’s defense spending, and some security
considerations.

The authors examined several determinants of the demand for Turkish defense expenditure. Based on the findings, the
following variables were identified as significant determinants:

1. NATO's defense spending: The defense expenditure of NATO allies was found to have a significant impact on Turkish
defense spending. This suggests that Turkey's defense spending is influenced by the defense spending of its allies.

2. Greece's defense spending: The defense expenditure of Greece was also found to have a significant impact on Turkish
defense spending. This indicates that there may be a relationship between the defense spending of these two countries,
possibly due to security considerations and the Cyprus conflict.

3. Security considerations: The study suggests that security considerations play a role in determining Turkish defense
spending. While the specific factors that contribute to these security considerations are not mentioned in the passage,
they likely include regional tensions and geopolitical threats.

Overall, these findings highlight the importance of external factors, such as the defense spending of allies and security
considerations, in shaping the demand for Turkish defense expenditure.

The specific determinants of the demand for Turkish defense that Selami Sezgin and Jülide Yildirim likely examined in
their paper, "The Demand for Turkish Defence Expenditure," would be detailed in the paper itself. While I don't have
access to the content of the paper, I can provide a list of common determinants that researchers typically investigate in
the context of defense expenditure. These determinants may include:

1. **Security Threats:** The perception of security threats, both domestic and international, can be a key determinant.
This includes the threat of armed conflicts, terrorism, or regional instability.

2. **GDP and Economic Conditions:** The overall economic health of the country, including factors like GDP growth,
inflation, and fiscal capacity, can influence defense demand.
3. **Political Factors:** The influence of political leaders, government policies, and political stability can shape defense
expenditure. Leadership changes and political priorities can affect military budgets.

4. **Alliances and International Commitments:** Membership in international organizations and alliances, such as
NATO, can come with specific defense spending obligations.

5. **Historical Context:** Past military conflicts, alliances, and defense strategies can have a lasting impact on a
country's defense posture.

6. **Public Opinion:** The preferences and priorities of the public and policymakers can play a role in determining
defense spending levels.

7. **Geopolitical Factors:** Turkey's strategic position in the region and regional conflicts can influence its defense
needs.

8. **Arms Procurement and Defense Industry:** Investments in domestic defense production and arms procurement
can influence defense expenditure.

9. **Economic Trade-offs:** The trade-offs between defense spending and other sectors of the economy, such as
healthcare, education, or infrastructure, are important determinants.

10. **Economic Shocks:** External economic factors, such as recessions or currency fluctuations, can impact the
government's ability to allocate resources to defense.

11. **Technology and Modernization:** The need to modernize and maintain an effective military force can be a
determinant, particularly in the context of evolving technology.

12. **International Dynamics:** Global trends in defense spending, arms races, and international conflicts can affect a
country's defense demand.

The specific determinants considered in the paper would depend on the research objectives and the data available to the
authors. To understand the exact determinants explored in their analysis, you would need to refer to the paper itself.

b. Methods:
Which variables did the researchers used for this research?

The researchers used several variables for this research, including:

- Share of Turkish defense spending in GDP (1987 constant prices)

- Growth rate of Turkish GDP (1987 constant prices)
- Average defense burden of NATO (D=Y)
- Turkish balance of trade (1987 constant prices) in GDP [(X-Y)=Y]
- Greek defense burden
- Share of non-defense government expenditure (Government spending-defense spending) in GDP
- Turkish population
- Cyprus conflict dummy variable takes value of one for the year 1974 and zero elsewhere
- Linear trend (1949-1998)

The researchers used the following variables for their research:

1. m: share of Turkish defense spending in GDP (1987 constant prices)

2. y: growth rate of Turkish GDP (1987 constant prices)
3. n: average defense burden of NATO (D=Y)
4. b: Turkish balance of trade (1987 constant prices) in GDP [(X-Y)=Y]
5. gr: Greek defense burden
6. ng: share of non-defense government expenditure (Government spending-defense spending) in GDP
7. pop: Turkish population
8. cyp: Cyprus conflict dummy variable takes value of one for the year 1974 and zero elsewhere
9. trend: linear trend (1949-1998)

These variables were used to estimate and analyze the demand for Turkish defense expenditure from 1949 to 1998.
In the context of the research on Turkish defense spending, the variables can be explained as follows:

1. m: This variable represents the share of Turkish defense spending in GDP (1987 constant prices). It is used to measure
the proportion of national income allocated to defense expenditures.

2. y: The variable "y" represents the growth rate of Turkish GDP (1987 constant prices). It is included in the study to
capture the relationship between economic growth and defense spending. Higher GDP growth rates may lead to
increased resources available for defense expenditure.

3. n: This variable represents the average defense burden of NATO, where D=Y (defense expenditure equals national
income). It captures the influence of defense spending by NATO allies on Turkish defense expenditure. If Turkey is a "free
rider," the coefficient of NATO would be negative, but if Turkey adopts a follower mode, the coefficient would be positive.

4. b: "b" denotes the Turkish balance of trade (1987 constant prices) as a percentage of GDP [(exports-imports)/GDP]. It
serves as a measure of the openness of the economy. The sign of the coefficient for this variable is ambiguous, as it can
either positively or negatively affect defense spending.

5. gr: The variable "gr" represents the Greek defense burden. It measures the defense expenditure of Greece and its
impact on Turkish defense spending. A positive coefficient would suggest a rivalry between the defense spending of both
countries.

6. ng: This variable represents the share of non-defense government expenditure (government spending minus defense
spending) in GDP. It captures the opportunity cost of defense and is expected to have a negative coefficient, indicating
that higher non-defense government spending may reduce defense expenditure.

7. pop: "pop" denotes the Turkish population. It is included to capture the public good aspects of military expenditure, as
a larger population may require a higher defense expenditure.

8. cyp: The variable "cyp" is a dummy variable that takes a value of one for the year 1974 (the year of the Cyprus conflict)
and zero for other years. It captures the expected positive effect of the conflict on defense spending.

9. trend: The "trend" variable represents a linear trend from the year 1949 to 1998. It helps capture any underlying long-
term changes or patterns in defense spending over time.

These variables are considered in the analysis to investigate the determinants of Turkish defense expenditure and
understand the economic relationships between various factors influencing defense spending.

The researchers used several variables for their research on the determinants of Turkish defense expenditure. These
variables include:

1. Growth rate of Turkish GDP (y): Represents the income level and is expected to have a positive relationship with
defense spending.
2. Average defense burden of NATO (n): Indicates the defense spending of NATO, and its coefficient is expected to be
positive if Turkey adopts a follower mode in response to NATO's defense spending.

3. Turkish balance of trade (b): Represents the trade balance in GDP and its effect on defense spending is ambiguous.

4. Greek defense burden (gr): Represents the defense spending of Greece and is included to determine if there is a
rivalry between the defense spending of both countries.

5. Share of non-defense government spending (ng): Represents the opportunity cost of defense expenditure and is
expected to have a negative relationship with defense spending.

6. Population (pop): Included to capture the public good aspects of military expenditure.

7. Cyprus dummy variable (cyp): Represents the threat of war due to the Cyprus conflict and is expected to have a
positive relationship with defense spending.

8. Trend variable (Trend): Represents the linear trend over the period of analysis.

These variables were used to estimate the demand for Turkish defense expenditure.

What data did they use in looking at the effects of the determinants of demand to the demand of Turkish Defense?

To answer your question, the authors used data from various sources to examine the effects of the determinants of
demand on the demand for Turkish defense expenditure. Specifically, they used defense expenditure data for Turkey,
Greece, and NATO from various issues of SIPRI yearbooks, GDP, GDP deflators, trade balance, and government
consumption data from various issues of IMF/IFS yearbooks, population data from SPO of Turkey, and a Cyprus conflict
dummy variable that takes a value of one for the year 1974 and zero elsewhere. The authors also used the ARDL model
approach to cointegration to analyze the long-run and short-run relationships between these variables and military
spending.

The authors obtained data from various sources to examine the effects of the determinants on the demand for Turkish
defense expenditure. The data used in the study include:

1. Defense expenditure data: Data on defense expenditure for Turkey, Greece, and NATO were taken from various issues
of the Stockholm International Peace Research Institute (SIPRI) Yearbooks.

2. GDP and GDP deflators: Gross Domestic Product (GDP) and GDP deflators were obtained from various issues of the
International Monetary Fund (IMF) International Financial Statistics (IFS) Yearbooks.

3. Trade balance: Data on the Turkish balance of trade were used, and it was measured in 1987 constant prices. Trade
balance data were also obtained from the IMF IFS Yearbooks.

4. Government consumption expenditure: The share of non-defense government expenditure in GDP was used as a
variable. This data was used to reflect the impact of government spending on defense expenditure.

5. Population data: The size of the Turkish population was considered as a variable in the study. Population data were
obtained from the State Planning Organization (SPO) of Turkey.

6. Cyprus conflict dummy variable: A dummy variable was created that took the value of one for the year 1974 (the year
of the Cyprus conflict) and zero for other years.
7. Linear trend: A linear trend variable was included in the analysis to capture any long-term systematic changes in
Turkish defense expenditure over the study period (1949-1998).

These data were used to model and estimate the demand for Turkish defense expenditure in the study.

The researchers used various data sources for their analysis of the determinants of Turkish defense expenditure. The
defense expenditure data for Turkey, Greece, and NATO were obtained from various issues of SIPRI yearbooks. GDP, GDP
deflators, trade balance, and government consumption data were sourced from various issues of IMF/IFS yearbooks.
Population data was taken from the State Planning Organization (SPO) of Turkey. These data sources provided the
necessary information to analyze the effects of variables such as GDP growth rate, average defense burden of NATO,
Turkish balance of trade, Greek defense burden, non-defense government spending, population, and the presence of
conflicts on the demand for Turkish defense expenditure.

What is the source of their data?

To answer your question, the authors used data from various sources to examine the effects of the determinants of
demand on the demand for Turkish defense expenditure. Specifically, they used defense expenditure data for Turkey,
Greece, and NATO from various issues of SIPRI yearbooks, GDP, GDP deflators, trade balance, and government
consumption data from various issues of IMF/IFS yearbooks, population data from SPO of Turkey, and a Cyprus conflict
dummy variable that takes a value of one for the year 1974 and zero elsewhere.

The source of the data used in the study on Turkish defense expenditure is as follows:

1. Defense expenditure data: The data on defense expenditure for Turkey, Greece, and NATO were obtained from various
issues of the Stockholm International Peace Research Institute (SIPRI) yearbooks. These yearbooks provide
comprehensive and trusted data on global military expenditure.

2. Economic data: GDP (Gross Domestic Product), GDP deflators, trade balance, and government consumption data were
sourced from various issues of the International Monetary Fund (IMF) International Financial Statistics (IFS) yearbooks.
These publications compile economic data from different countries and provide consistent and reliable data sources.

3. Population data: The data on the Turkish population were taken from the State Planning Organization (SPO) of Turkey.
The SPO is a government agency responsible for economic planning, and they provide official population figures for
Turkey.

The authors of the study collected data from these sources to analyze the determinants of Turkish defense expenditure
and examine its relationship with economic factors and other variables over the period from 1949 to 1998.

The authors collected data from various sources for their research on the demand for Turkish defense expenditure.
Specifically, they obtained defense expenditure data for Turkey, Greece, and NATO from SIPRI yearbooks. GDP, GDP
deflators, trade balance, and government consumption data were obtained from IMF-IFS yearbooks. Population data
were taken from the State Planning Organization (SPO) of Turkey.

The researchers used various sources for their data in this paper. The defense expenditure data for Turkey, Greece, and
NATO were obtained from various issues of SIPRI yearbooks. GDP, GDP deflators, trade balance, and government
consumption data were sourced from various issues of IMF/IFS yearbooks. Population data was taken from the State
Planning Organization (SPO) of Turkey. The authors also referenced other studies and sources for their methodology and
model selection

What scientific or mathematical methods were utilized in this paper?

In terms of the scientific or mathematical methods utilized in the paper, the authors employed an econometric approach
known as the autoregressive distributed lag (ARDL) model. This model allows for the examination of the long-run and
short-run dynamics of defense expenditure on economic growth. The ARDL model was chosen as it is applicable
regardless of the stationary properties of the variables and allows for inferences on long-run estimates. The study
employed the ARDL approach based on the methodology outlined by Pesaran and Shin (1999).

In terms of scientific and mathematical methods, the researchers employed the autoregressive distributed lag approach
to cointegration (ARDL) following the methodology outlined by Pesaran and Shin (1999). This approach allows for
inferences on long-run estimates and can be applied regardless of the stationary properties of the variables in the
sample. The researchers also used regression analysis and conducted significance tests to analyze the long-run and short-
run effects of the determinants on Turkish defense expenditure.
Write a description of the methods that they used.

Why do you think this method was used?

To answer your question, the authors used a multi-equation system estimation procedure to model and explain defense
expenditure. This approach is commonly used in studies concerning the demand for military expenditure because it
allows for cross-equation restrictions, permits hypothesis testing, and can account for cross-equation disturbance
covariances, thus improving efficiency. Additionally, this approach can allow for simultaneity, where explanatory and
dependent variables are jointly determined. The authors also used the ARDL model approach to cointegration to analyze
the long-run and short-run relationships between the variables and military spending. The main advantage of this
procedure is that it can be applied regardless of the stationary properties of the variables in the sample and allows for
inferences on long-run estimates, which is not possible under alternative cointegration procedures.

The autoregressive distributed lag approach to cointegration (ARDL) was employed in this study on Turkish defense
spending for several reasons:

1. Conversion problems: Using level variables in an empirical study on defense expenditure may encounter conversion
problems when dealing with data from multiple countries. For this study, the data need to be collected and converted
from different currencies, making the use of level variables less reliable. Using share variables helps overcome these
conversion problems.

2. Economic impact analysis: The main concern of the study is to understand the economic impact of military
expenditure on economic growth. Share data, rather than level data, may be more appropriate for this purpose, as they
allow for a more direct analysis of the relationship between defense expenditure and economic growth.

3. Long-run and short-run dynamics: The ARDL approach allows for the identification of both long-run and short-run
dynamics between defense expenditure and its determinants. This helps capture the interdependencies and adjustments
that occur over time.

4. Stationarity of variables: The ARDL approach can be applied regardless of the stationary properties of the variables.
This is advantageous when dealing with non-stationary variables commonly found in economic time series data.

5. Model complexity: The ARDL approach allows for the inclusion of a large number of variables in the model. This is
particularly important in the context of defense expenditure, as multiple factors may influence the demand for military
expenditure.

By employing the ARDL approach, the study aimed to address the limitations and challenges associated with alternative
modeling methodologies while providing robust and reliable estimates of the determinants of Turkish defense spending.

The authors used the ARDL (autoregressive distributed lag) approach to cointegration analysis for their research. The
ARDL model allows for the examination of the long-run and short-run dynamics of defense expenditure on economic
growth. It is applicable regardless of the stationary properties of the variables and allows for inferences on long-run
estimates.

The use of the ARDL model in this research is effective for several reasons:

1. Overcoming conversion problems: The authors state that using level variables could lead to conversion problems when
estimating defense demand. Since NATO consists of multiple countries with different currencies, converting data to a
common currency can be challenging. By using share variables, some of these conversion problems can be mitigated.

2. Economic impact analysis: The researchers aim to assess the economic impact of military expenditure on economic
growth. As Brauer (2002) argues, share data can be more appropriate in such cases as it provides a better measure of the
relationship between defense expenditure and GDP growth.

3. Inference on long-run estimates: The ARDL approach allows for inferences on long-run estimates, which is important
for understanding the long-term relationship between defense expenditure and economic indicators.

Was the method used effective for the research?

To answer your question, the effectiveness of the method used in the research depends on various factors, such as the
quality and reliability of the data, the appropriateness of the model for the research question, and the validity of the
assumptions made in the analysis. However, the authors argue that the ARDL model approach to cointegration is a
suitable method for their research because it allows for inferences on long-run estimates, which is not possible under
alternative cointegration procedures. Moreover, the number of variables in the model may be large, contrary to the VAR
models. Therefore, the authors believe that the method used in the research is effective in providing insights into the
determinants of demand for Turkish defense expenditure.

Overall, the ARDL approach was chosen due to its ability to overcome conversion problems, its suitability for economic
impact analysis, and its capability to provide insight into long-run dynamics.

Yes, the method used in the research, which was the autoregressive distributed lag (ARDL) approach to cointegration
analysis, was effective for the research on Turkish defense spending. The ARDL model allows for the examination of both
long-run and short-run dynamics of defense expenditure on economic growth.

The ARDL approach is particularly suitable for this research as it can be applied regardless of the stationary properties of
the variables and allows for inferences on long-run estimates. Additionally, this approach is advantageous when dealing
with a large number of variables, as it does not suffer from the degrees of freedom limitations of VAR models.

Furthermore, the ARDL approach used in the research allowed for the identification and analysis of the long-run and
short-run dynamics of defense expenditure on economic growth. This analysis provides valuable insights into the
relationship between defense spending and economic factors over time.

Overall, the ARDL methodology employed in the research was effective for the analysis of the determinants of Turkish
defense expenditure and provided valuable insights into the economic relationships and dynamics involved.

c. Results:
What did the paper find out?
The authors found that Turkish defense burden seems to depend on the previous year's burden. The change of income
has a negative and significant effect, which implies that as GDP increases, the share of military expenditure out of GDP
declines, indicating that the growth rate of military expenditure is less than that of GDP. The effect of the change in
NATO's spending is positive and significant, implying that Turkey is a "follower." The study also found that the shares of
health and educational expenditures in the budget cannot be considered as opportunity cost variables for defense
expenditure in Turkey.

The paper found that Turkish defense expenditure is mainly determined by the defense expenditure of its allies (NATO)
and its enemies (Greece) in the short-run. However, Greek defense spending does not have a significant effect on Turkish
demand for defense spending in the long run, contrary to NATO spending. This suggests that Turkey follows the defense
spending patterns of NATO, indicating a follower mode. Additionally, the study found that the share of trade balance,
representing the openness of the economy, has an ambiguous effect on defense expenditure. The study also included
other variables such as the defense burden of Greece, non-defense government expenditure, population, and dummy
variables for the Cyprus conflict, but these did not have significant effects on Turkish defense expenditure. Overall, the
study provides insights into the determinants of Turkish defense expenditure and tests the reliability and robustness of
previous studies on the topic.

The paper found that Turkish defense expenditure is mainly determined by the defense expenditure of NATO and Greece
in the short run. However, in the long run, Greek defense spending does not have a significant effect on Turkish defense
spending, while NATO's defense spending does. This suggests that Turkey follows NATO's defense spending and that
there is no arms race or rivalry between Turkey and Greece in the long run.

What does the result suggest?

The results suggest that Turkish defense expenditure is mainly determined by the defense expenditure of the allies
(NATO) and that of enemies (Greece) in the short run. However, Greek defense spending does not have any significant
effect on Turkish demand for defense spending in the long run, contrary to the spending of NATO. These results suggest
that Turkey is in the follower mode considering the NATO defense expenditure, and there does not seem to be an arms
race or rivalry between Turkey and Greece in the long run. However, in the short run, there may be an arms race
between the two countries due to the Cyprus conflict. Moreover, the short-run estimates have a significant and high
adjustment coefficient, indicating that the economy quickly returns to its equilibrium level once shocked.

The results suggest that Turkish defense expenditure is influenced by several factors. In the short run, Turkish defense
spending is found to be positively influenced by the defense expenditure of its allies (NATO) and its rivals (Greece). This
indicates a "follower" mode of defense spending, whereby Turkey increases its defense spending in response to the
spending patterns of NATO and Greece.

Additionally, the study finds that the change in the share of trade balance, representing the openness of the economy,
has a negative and significant effect on Turkish defense spending. This suggests that Turkey is a net arms importer,
meaning that as its trade balance decreases, its demand for defense spending decreases as well.

Contrary to expectations, the study finds that the change in non-defense government expenditure, which represents the
opportunity cost of defense, is not significant in determining Turkish defense spending.

Overall, the study provides insights into the determinants of Turkish defense expenditure and suggests that Turkey
follows the defense spending patterns of NATO and is influenced by Greek defense spending.

The results suggest that Turkish defense spending is mainly determined by the defense expenditure of NATO and Greece
in the short run. However, in the long run, Greek defense spending does not have a significant effect on Turkish defense
spending, while NATO's defense spending does. This implies that Turkey follows NATO's defense spending and that there
is no arms race or rivalry between Turkey and Greece in the long run.

What variables determines the Turkish defense spending in the short run and the long run?
The paper finds that in the short run, Turkish defense spending is mainly determined by the defense spending of its allies
(NATO) and its enemies (Greece). However, in the long run, Greek defense spending does not have a significant effect on
Turkish defense spending, while NATO defense expenditure continues to have a significant impact. This suggests that
Turkey follows the defense spending patterns of NATO, indicating a follower mode. Additionally, the paper suggests that
there does not appear to be an arms race or rivalry between Turkey and Greece in the long run.
According to the study, the determinants of Turkish defense spending in the short run are the defense expenditure of
NATO and Greece. However, in the long run, Greek defense spending does not have a significant effect on Turkish
defense spending, while NATO's defense spending does. This suggests that Turkey follows NATO's defense spending and
that there is no arms race or rivalry between Turkey and Greece in the long run.

In the conclusion, what is the greatest determinant of the Turkish defense spending in the long run and the short run?
According to the conclusion of the paper, the greatest determinant of Turkish defense spending in the short run is the
defense expenditure of allies (NATO) and enemies (Greece), while in the long run, it is determined by other factors such
as NATO commitments, fears of Islamic fundamentalism, and the desire to suppress Kurdish militants.

According to the findings of the study, the greatest determinant of Turkish defense spending in the long run is the
defense expenditure of its allies (NATO). This indicates that Turkey follows the defense spending patterns of NATO and
adjusts its own defense expenditure accordingly.

In the short run, the study found that Turkish defense spending is primarily influenced by the defense expenditure of its
enemies (Greece), suggesting a potential arms race between the two countries due to conflicts like Cyprus.

Therefore, the defense expenditure of allies (NATO) is the key determinant in the long run, while the defense
expenditure of enemies (Greece) plays a more significant role in the short run for Turkish defense spending.

In the conclusion, the study identifies that the greatest determinant of Turkish defense spending in the long run is the
defense expenditure of NATO. This suggests that Turkey follows NATO's defense spending. On the other hand, in the
short run, the study finds that Turkish defense spending is mainly determined by the defense expenditure of both NATO
and Greece. However, Greek defense spending does not have a significant effect on Turkish defense spending in the long
run.

d. Application of the article in the Philippine Setting:

How can the results of this article be applied to the Philippine Situation?
However, it is important to note that the Philippine situation may differ from that of Turkey, and therefore, the results of
this article may not be directly applicable. Nonetheless, the study's methodology and approach can be used as a
reference for conducting a similar analysis in the Philippine context.

For instance, the Philippine government can use the ARDL model approach to cointegration to analyze the determinants
of the demand for military expenditure in the country. The study can also consider the impact of external factors such as
alliances and conflicts on the demand for military expenditure.

Moreover, the study's finding that the shares of health and educational expenditures in the budget cannot be considered
as opportunity cost variables for defense expenditure in Turkey can also be applied to the Philippine context. The
Philippine government can use this insight to ensure that the country's health and education sectors receive adequate
funding without compromising its defense capabilities.

In summary, while the results of this article may not be directly applicable to the Philippine situation, the study's
methodology and approach can be used as a reference for conducting a similar analysis in the Philippine context.

The results of this article, which analyze the determinants of Turkish defense expenditure, may not directly apply to the
Philippine situation. The study specifically focuses on the factors influencing Turkish defense spending, such as NATO
defense spending and Greece's defense spending. The Philippine context may have different determinants and dynamics
when it comes to defense expenditure.

To understand the applicability of these findings to the Philippine situation, further research would be needed to
examine the specific factors that drive defense spending in the Philippines. This could involve analyzing the country's
geopolitical situation, internal security concerns, economic factors, and government policies related to defense. By
conducting a similar study using Philippine-specific data and variables, policymakers and researchers can gain insights
into the factors influencing defense expenditure in the country.

The results of this article, which focus on the determinants of Turkish defense expenditure, may not directly apply to the
Philippine situation. The defense spending patterns and factors influencing defense expenditure can greatly vary
between countries due to their geopolitical context, strategic priorities, and economic conditions. Therefore, it is
important to consider the specific characteristics of the Philippines when examining defense expenditure in that context.

To understand the determinants of Philippine defense expenditure, it would be necessary to analyze the country's
historical defense spending patterns, regional security dynamics, and macroeconomic indicators. Factors such as
perceived security threats, alliance commitments, military modernization needs, and domestic economic conditions are
likely to influence the demand for defense spending in the Philippine context.

Conducting a thorough analysis of Philippine defense expenditure, considering relevant variables and qualitative factors
specific to the country, would provide more accurate and relevant insights for policymakers and researchers in the
Philippine context.

e. Personal analysis and reaction to the paper: What did you learn from the article?
I do not have personal opinions or reactions. However, I can provide a summary of the article. The article analyzes the
determinants of the demand for Turkish military expenditure from 1949 to 1998. The study finds that the previous year's
military burden, changes in GDP, and changes in NATO's spending are significant determinants of Turkish military
expenditure. The study also employs the ARDL model approach to cointegration to estimate the long-run relationship
between the variables. Overall, the article provides valuable insights into the factors that contribute to the demand for
military expenditure in Turkey.

Based on the information provided, the article focuses on the determinants of Turkish defense expenditure. The study
finds that in the short run, Turkish defense spending is mainly influenced by the defense expenditure of its allies (NATO)
and its enemies (Greece). In the long run, however, Greek defense spending does not have a significant effect on Turkish
defense spending, while NATO defense expenditure continues to have a significant impact.

The study suggests that Turkey follows the defense spending patterns of NATO, indicating a follower mode in terms of
defense expenditure. It also indicates that there does not appear to be an arms race or rivalry between Turkey and
Greece in the long run.

These findings provide insights into the factors that shape Turkish defense expenditure and contribute to understanding
the dynamics of defense spending in Turkey. However, without access to the full article and a more detailed analysis, it is
challenging to provide a comprehensive personal analysis and reaction.

From the article, I learned that the demand for Turkish defense expenditure has been continuously increasing over the
years. The study aimed to fill a gap in the defense economics literature by investigating the determinants of Turkish
defense spending. The findings suggest that Turkish defense spending is mainly determined by NATO's defense spending,
Greece's defense spending, and some security considerations. Turkey is found to be a follower in terms of NATO defense
spending, and there is no significant arms race or rivalry between Turkey and Greece in the long run. The study also
highlights the importance of using the right data and econometric techniques to obtain reliable results in analyzing
defense expenditure.