The Impact of Worldwide Military Spending Cuts on Developing Countries
AbstractThis paper investigates the economic impact of a coordinated reduction in military expenditures of 20 percent using a specially modified version of the MULTIMOD world economic model. Simulation results indicate that in developing countries the present value of consumption increases by 46 percent of 1992 GDP, compared to military expenditures cuts, in present value terms, of 33 percent of 1992 GDP. The gains reflect both the release of domestic resources and a positive international economic externality due to enhanced trade and lower world interest rates. Accordingly, the net debtor developing country gains exceed those of industrial countries. Examination of individual developing country economies confirms the significance of the external trade effect on the pattern and level of gains.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Policy Modeling.
Volume (Year): 20 (1998)
Issue (Month): 3 (June)
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Web page: http://www.elsevier.com/locate/inca/505735
Other versions of this item:
- Steven A. Symansky & Tamim Bayoumi & Daniel P. Hewitt, 1993. "The Impact of Worldwide Military Spending Cutson Developing Countries," IMF Working Papers 93/86, International Monetary Fund.
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- Ronnie Lowenstein & Richard Peach, 1992. "The impact of the current defense build-down," Quarterly Review, Federal Reserve Bank of New York, issue Aut, pages 59-68.
- repec:hal:journl:halshs-00196428 is not listed on IDEAS
- Rémy Herrera, 2005. "Un renouveau de l'économie du développement ?," Cahiers de la Maison des Sciences Economiques r05075, Université Panthéon-Sorbonne (Paris 1).
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