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Intelligence and defense spending: a cross-country evidence

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  • Salahodjaev, Raufhon

Abstract

This paper investigates the association between intelligence and military expenditure, across 159 nations during the 1990-2013 period. The econometric results we provide are surprising. On one hand, we fail to confirm that intelligence has monotonic effect on military spending. However, the results also suggest a novel type of intelligence-military spending nexus. In particular, the regression estimates show that there is inverted U-shaped relationship between IQ and military expenditure. From a policy perspective these findings suggest that cognitive development that increases military expenditures is sustainable so long as defense sector has positive spillovers on economic and social well-being.

Suggested Citation

  • Salahodjaev, Raufhon, 2016. "Intelligence and defense spending: a cross-country evidence," MPRA Paper 70252, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:70252
    as

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    References listed on IDEAS

    as
    1. Salahodjaev, Raufhon, 2015. "Intelligence and Shadow Economy: a Cross-Country Empirical Assessment," MPRA Paper 61976, University Library of Munich, Germany.
    2. Potrafke, Niklas, 2012. "Intelligence and corruption," Economics Letters, Elsevier, vol. 114(1), pages 109-112.
    3. Salahodjaev, Raufhon, 2015. "Democracy and economic growth: the role of intelligence in cross-country regressions," MPRA Paper 65716, University Library of Munich, Germany, revised 26 Apr 2015.
    4. Salahodjaev, Raufhon, 2016. "Intelligence and deforestation: International data," Forest Policy and Economics, Elsevier, vol. 63(C), pages 20-27.
    5. Oechssler, Jörg & Roider, Andreas & Schmitz, Patrick W., 2009. "Cognitive abilities and behavioral biases," Journal of Economic Behavior & Organization, Elsevier, vol. 72(1), pages 147-152, October.
    6. Salahodjaev, Raufhon, 2015. "IQ and the wellbeing of nations," MPRA Paper 66356, University Library of Munich, Germany.
    7. Weede, Erich & Kampf, Sebastian, 2002. "The Impact of Intelligence and Institutional Improvements on Economic Growth," Kyklos, Wiley Blackwell, vol. 55(3), pages 361-380.
    8. Salahodjaev, Raufhon, 2015. "Intelligence and finance," MPRA Paper 68950, University Library of Munich, Germany.
    9. Shin-Jen Tzeng & Ching-Chong Lai & Chun-Chieh Huang, 2008. "Does Military Expenditure Matter For Inflation And Economic Growth?," Defence and Peace Economics, Taylor & Francis Journals, vol. 19(6), pages 471-478.
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    Cited by:

    1. Salahodjaev, Raufhon, 2017. "Government size, intelligence and life satisfaction," MPRA Paper 76902, University Library of Munich, Germany.

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    More about this item

    Keywords

    military; expenditure; intelligence; cross-country; IQ;
    All these keywords.

    JEL classification:

    • F52 - International Economics - - International Relations, National Security, and International Political Economy - - - National Security; Economic Nationalism

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