The econometric model of the study consists of economic growth, rural value added, and defence expenditures. The purpose of this study is to determine whether there is a causal relationship between economic growth, defence expenditures, and rural value-added variables in Turkey. In accordance with the results of the unit root tests, the rural value added, economic growth, and defence expenditure variables are stationary at level values and first difference levels. According to the results of the Tsong – Lee – Tsai – Hu cointegration test, there is no long-run relationship among economic growth, defence expenditures, the trade openness rate, and rural value-added. According to the results of the Fourier-type Toda Yamamoto causality test, there is a bidirectional causality relationship between economic growth, defence expenditure, trade openness rate, and rural value-added variables in Turkey. The original value of the study is that since defence expenditure and rural value added affect the economic growth variable, the increase or decrease in one variable is thought to affect the increase or decrease in the other variable. In terms of the causal relationship, it has been found that there is a causal link between the trade openness ratio variable and economic growth and variables associated with it. Consequently, in terms of economic growth, there is an opportunity cost between defence expenditure and rural value-added variables.
Karahan et al. (Tue,) studied this question.