Is There Any Cointegration between Turkey's And Greece's Military Expenditures?

This study concerns about the long-run relationship between Turkey's and Greece's military expenditures due to the hostility of these two neighboring and NATO ally countries. Our data range from 1949 to 2001. After checking the series whether they are stationary or not based upon Augmented Dickey-Fuller test, we apply to Johansen's cointegration test to see the long-run connection. Our empirical findings support the long-run relationship between these two countries military expenditures. We also checked the ECM to see how the cointegrating vector feeds back on the military expenditures of the two countries.