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An Empirical Study Of The Spin-Off Effects Of Military Spending

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Author Info
TRISH KELLY
MEENAKSHI RISHI
Abstract

The article explores the spin-off effect controversy surrounding the role of military spending in economic development by investigating its impact on output in six industries linked to the military. The article's econometric investigation does not support the case for spin-off effects. The results suggest that military spending's direct impact on output in each industry is negative or insignificant depending on whether adjustments for trade in armaments are made. The results also fail to substantiate physical and human capital spin-off effects. Based on these results, the article concludes that the case for spin-off effects has been exaggerated.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Defence and Peace Economics.

Volume (Year): 14 (2003)
Issue (Month): 1 (February)
Pages: 1-17
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Handle: RePEc:taf:defpea:v:14:y:2003:i:1:p:1-17

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Related research
Keywords: Military Spending; Spin-off Effects; Industry-level Impact;

References listed on IDEAS
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    Other versions:
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    Other versions:
  11. Brumm, Harold J., 1997. "Military Spending, Government Disarray, and Economic Growth: A Cross-Country Empirical Analysis," Journal of Macroeconomics, Elsevier, vol. 19(4), pages 827-838, October. [Downloadable!] (restricted)
  12. Faini, Riccardo & Annez, Patricia & Taylor, Lance, 1984. "Defense Spending, Economic Structure, and Growth: Evidence among Countries and Over Time," Economic Development and Cultural Change, University of Chicago Press, vol. 32(3), pages 487-98, April.
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This page was last updated on 2010-1-1.


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