TOTAL FACTOR PRODUCTIVITY IN DEFENCE INDUSTRY

In this study, we have tried to examine the total factor productivity of defense industries. gdp, defense expenditures, employment in defense industry, import for defense industry and logistic performance index were used as input variables; total sales of defense industry, export of defense industry and profit of defense industry were also used as output variables. data was set used for the period of 2009-2013 years, were acquired from world bank (wb) and sipri. 21 countries were analyzed as decision making units (dmu) with the malmquist total factor productivity index. according to research findings; it was seen that all countries managed to get increasing efficiency values in technical, technological, pure technical and scale efficiencies; but, they could not managed to have any changes in total factor productivity values. additionally, only australia emerged to have gotten increasing efficiency values in all kind of efficiencies; whereas turkey and singapore was observed to have been just the opposite to australia.