Drivers of Greek and Turkish Defense Spending

Abstract

This paper evaluates the factors responsible for maintaining substantial military expenditures in Greece and Turkey. The presented research encompasses theoretical and empirical aspects. First, defense spending by both countries was analyzed based on statistical data from international sources. Next, the theoretical determinants of budgetary spending are reviewed, which consider political, economic and military factors behind high expenditures on the army in Greece and in Turkey. Finally, Granger causality tests is applied to determine whether a causal relation between variables exists in the case of these two countries.We conclude that defense expenditures in Greece and Turkey exceed the NATO average, but are relatively low relative to those of selected Middle Eastern countries. Our results indicate that high military spending level in Turkey is mainly driven by national security concerns, whereas an economic driver prevails in Greece.

The Greek-Turkish Rivalry: A Bayesian VAR Approach

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Savunma Harcamaları Açısından Türkiye ve Komşu Ülkelerin Coğrafi Perspektiften Değerlendirilmesi

“…Şekil 1: Savunma Harcamalarını Etkileyen Faktörler https://tidsad.com Savunma harcamalarını etkileyen en önemli unsur ülkenin ekonomik gücüdür (Waszkiewicz, 2016). Savunma sistemlerinin büyük bir çoğunluğu sahip olduğu özellikler nedeniyle yüksek maliyetli olması, ülkelerin savunma harcamalarını doğrudan etkilemektedir (Duran, 2022).…”

Arms Racing, Military Build-Ups and Dispute Intensity: Evidence from the Greek-Turkish Rivalry, 1985-2020

“…Therefore, evidence suggests that tensions among the two countries influence military spending. However, while Turkish military spending is driven solely by security concerns, Greece decision-making on military spending is more restricted due to its European Monetary Union membership (Waszkiewicz 2016). Moreover, the 2009 financial crisis has further limited the ability of the Greek government to direct resources to national defence (Kollias, Paleologou, and Stergiou 2016).…”