Greece and Turkey are both members of NATO and are two of the principal players in the Balkan region. Their respective defence burdens (i.e. the share of military expenditure to GDP) are the highest in NATO. Their bilateral relations are marred by serious friction and conflict of interest and...

This paper investigates the causality issue between military expenditure and growth in the case of Turkey, a strategically located developing country, for the period 1954-1993. Results reported herein reveal the absence of any causal ordering between the variables in question.