THE IMPACT OF TURKISH MILITARY TECHNOLOGICAL ADVANCEMENT ON PRODUCTION AND PRODUCTIVITY GROWTH (2000–2024)

Abstract

Military and defence industries play a pivotal role in reducing dependency on foreign technologies, weaponry, and equipment, positioning them as key drivers in the development and modernisation of national armed forces. These industries serve as a foundational element for ensuring national stability. Consequently, numerous countries have initiated efforts to establish military sectors capable of supplying comprehensive military technologies across diverse domains, aiming to strengthen their forces while optimising defence expenditure and attaining self-sufficiency in armament provision. In pursuit of national defence objectives, armed forces stimulate the growth of domestic military industries by establishing industrial institutions designed to foster sectoral development. These entities are responsible not only for supplying the armed forces but also for transferring military technologies to civilian sectors within the national economy. Furthermore, they engage in the production of military goods for export to regional neighbours and global markets, thereby enhancing competitiveness in the international arms industry. The expansion and production of military industries are also strategic measures to curtail import reliance. Research indicates that disembodied technological progress positively influences production growth and is associated with an increase in research and development expenditures relative to GDP. Similarly, embodied technological progress contributes to production growth, albeit with a capital-biased effect that enhances labour productivity. In addition, the growth in exports of commodities, defence products, and advanced technologies represents a significant source of revenue and resource mobilisation, thereby contributing substantially to GDP expansion and serving as an important indicator of economic and social advancement. Within the Turkish context, the defence sector emerges as a principal contributor to economic performance. Accordingly, it is recommended that Turkey maintain its policy of developing the military industry, utilising it as a deterrent, an investment asset, and a vehicle for the advancement of both embodied and disembodied technologies, ultimately supporting broader objectives of economic growth and development.