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Should Education and Military Expenditures be Combined for Government Economic Policy?

Author

Listed:
  • Anna Balestra

    (CSEA, Università Cattolica del Sacro Cuore)

  • Raul Caruso

    (Department of Economic Policy and CSEA, Universita` Cattolica del Sacro Cuore CESPIC, Catholic University “Our Lady of Good Counsel”)

Abstract

This paper examines the impact of EDUMILEX, namely the ratio between investment in education and military expenditure on economic performance, i.e. GDP per capita and labor productivity, using a panel data estimation for 60 countries over the period 2000-2018. The findings highlight a non-linear relationship. In particular, results suggest that a cubic relationship exists between EDUMILEX and economic performance. The value of EDUMILEX computed at the critical value can be considered the target variable for economic policy. Heterogeneity between developed and non-developed has been also investigated. Findings confirm that the effect of EDUMILEX is heterogeneous. Lower values of EDUMILEX are required to increase of economic performance in developed countries compared to non-developed ones.

Suggested Citation

  • Anna Balestra & Raul Caruso, 2022. "Should Education and Military Expenditures be Combined for Government Economic Policy?," Working Papers 1017, European Centre of Peace Science, Integration and Cooperation (CESPIC), Catholic University 'Our Lady of Good Counsel'.
    • Handle: RePEc:pea:wpaper:1017
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    Cited by:

    1. Anna Balestra & Raul Caruso, 2024. "Education and Military Expenditures: Countervailing Forces in Designing Economic Policy. A Contribution to the Empirics of Peace," DISCE - Quaderni del Dipartimento di Politica Economica dipe0035, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).

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    More about this item

    Keywords

    Peace; Education; Military Expenditures; Economic Growth; Development;
    All these keywords.

    JEL classification:

    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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