IS THE CAUSAL NEXUS OF MILITARY EXPENDITURES AND ECONOMIC GROWTH ASYMMETRIC IN G-6?

In this study, it is aimed to examine the relationship between military expenditures and economic growth in G-6 countries such as Canada, France, Germany, Italy, the U.K and the U.S. In previous studies, the causal relationship between variables was performed by the availability of the assumption of positive shocks. Therefore, in this study the relationship between military expenditures and economic growth is examined by asymmetric causality test developed by Hatemi J (2012). The study concluded that the increase in military expenditures negatively affects economic growth in France, Germany and the U.K. In addition, the neutrality hypothesis is supported in Canada and Italy.