The economics of defence and regional development of the insular areas of the North Aegean: Lesbos

The relationship between economic development and defence policy constitutes a central focus of defence economics. In insular regions, this relationship gains particular importance due to geographic constraints, economic specialization, and the geopolitical significance of islands. This article aims to investigate the impact on regional development of the North Aegean islands through the lens of defence economics. By conducting a systematic literature review of international academic research, the study examines the role of military investments, defence infrastructure, and geopolitical strategy in shaping economic activity within insular economies. The findings indicate that defence spending can contribute to economic growth through the creation of dual-use infrastructure, increased employment, and the strengthening of transportation networks. Simultaneously, the presence of military facilities can act as a stabilizing factor in regions with limited economic diversification. However, excessive reliance on military activities may create new forms of economic dependence and constrain the potential for sustainable development. Therefore, sustainable development in insular regions requires a balanced approach between defence investments and economic diversification.