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Corruption and Military Spending

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  • International Monetary Fund

Abstract

Anecdotal evidence relates corruption with high levels of military spending. This paper tests empirically whether such a relationship exists. The empirical analysis is based on data from four different sources for up to 120 countries in the period 1985–98. The association between military spending and corruption is ascertained by using panel regression techniques. The results suggest that corruption is indeed associated with higher military spending as a share of both GDP and total government spending, as well as with arms procurement in relation to GDP and total government spending. This evidence indicates that defense spending can be considered for constructing governance indicators.

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Bibliographic Info

Paper provided by International Monetary Fund in its series IMF Working Papers with number 00/23.

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Length: 31
Date of creation: 01 Jan 2000
Date of revision:
Handle: RePEc:imf:imfwpa:00/23

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Keywords: Military expenditures; military spending; military; arms; military equipment; military procurement; armed forces; arms trade; conflict countries; foreign investors; armed conflict; armed conflicts; combat; disarmament agency; arms control; military forces; disarmament; military activities; military engagements; military use; military personnel; corrupt practice; arms transfers; ammunition; criminal act; military aircraft; military technology; civil service; foreign government; military expenditure;

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References

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  1. Rauch, James E & Evans, Peter B., 1999. "Bureaucratic Structure and Bureaucratic Performance in Less Developed Countries," University of California at San Diego, Economics Working Paper Series qt0sb0w38d, Department of Economics, UC San Diego.
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  17. Rafael Di Tella & Alberto Ades, 1999. "Rents, Competition, and Corruption," American Economic Review, American Economic Association, vol. 89(4), pages 982-993, September.
  18. Johnson, Simon & Kaufmann, Daniel & Zoido-Lobaton, Pablo, 1998. "Regulatory Discretion and the Unofficial Economy," American Economic Review, American Economic Association, vol. 88(2), pages 387-92, May.
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