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Military Expenditure and Debt in Small Industrialised Economies: A Panel Analysis

Author

Listed:
  • J Paul Dunne

    (University of the West of England)

  • Sam Perlo-Freeman

    (University of the West of England)

  • Aylin Soydan

    (Middlesex University Business School)

Abstract

This paper considers the impact of military spending on debt in a panel of 11 small industrialising economies using panel data methods. It provides estimates for fixed effects and random effects models and then moves on to consider dynamic models. The dynamics are found to be important and the results suggest that military burden does indeed have a positive impact on the share of external debt in GDP.

Suggested Citation

  • J Paul Dunne & Sam Perlo-Freeman & Aylin Soydan, 2003. "Military Expenditure and Debt in Small Industrialised Economies: A Panel Analysis," Working Papers 0306, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
    • Handle: RePEc:uwe:wpaper:0306
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    References listed on IDEAS

    as
    1. Robert E. Looney & P.C. Frederiksen, 1986. "Defense Expenditures, External Public Debt and Growth in Developing Countries," Journal of Peace Research, Peace Research Institute Oslo, vol. 23(4), pages 329-337, December.
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    8. Milman, Claudio D., 1998. "The Latin American foreign debt revisited," Global Finance Journal, Elsevier, vol. 9(2), pages 173-180.
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    More about this item

    Keywords

    Military spending; external debt; panel data.;
    All these keywords.

    JEL classification:

    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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