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Military Spending And Economic Growth In South Asia: Comment And Reconsideration

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  • W. Robert J. Alexander

Abstract

In a recent paper in this journal, Wijewerra and Webb study the connection between military spending and gross domestic product (GDP) in a group of five South Asian countries, finding a small but statistically significant positive relationship between military spending and GDP. This paper reviews their approach and proposes an alternative which tries to deal with the problems of omitted variables and variable construction. It finds, in contrast, that a higher share of military spending in GDP is associated with lower growth of GDP per capita.

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  • W. Robert J. Alexander, 2013. "Military Spending And Economic Growth In South Asia: Comment And Reconsideration," Defence and Peace Economics, Taylor & Francis Journals, vol. 24(2), pages 173-178, April.
    • Handle: RePEc:taf:defpea:v:24:y:2013:i:2:p:173-178
    DOI: 10.1080/10242694.2012.679832
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    Cited by:

    1. Ullah, Assad & Zhao, Xinshun & Kamal, Muhammad Abdul & Zheng, JiaJia, 2020. "Modeling the relationship between military spending and stock market development (a) symmetrically in China: An empirical analysis via the NARDL approach," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 554(C).
    2. Sefa Awaworyi Churchill & Siew Ling Yew, 2018. "The effect of military expenditure on growth: an empirical synthesis," Empirical Economics, Springer, vol. 55(3), pages 1357-1387, November.
    3. J. Paul Dunne & Nan Tian, 2016. "Military expenditure and economic growth, 1960–2014," Economics of Peace and Security Journal, EPS Publishing, vol. 11(2), pages 50-56, October.

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