ABSTRACT
In a series of papers, Sezgin (1997, 1998, 1999a) examined Turkey’s defense-growth relationship. The results suggested that the Turkish defense sector stimulates economic growth in Turkey. The aim of this chapter is to analyze Greece’s defense-growth relationship so as to compare the results with those obtained for Turkey. Greece and Turkey show similarities. Both countries allocate large budgets to their defense sector as compared to other NATO countries and they both started to produce their own military equipment during the 1980s. One might therefore suspect that Greece’s defense-growth relationship is similar to that found for Turkey.
