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Assessing the Effects of Military Expenditure on Growth

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Author Info

  • Giorgio d'Agostino

    (Università degli Studi di Roma and UWE, Bristol)

  • Luca Pieroni

    ()
    (University of Perugia and UWE, Bristol)

  • J Paul Dunne

    ()
    (University of the West of England and University of Cape Town)

Abstract

Military spending is an expenditure by governments that has influence beyond the resources it takes up, especially when it leads to or facilitates conflicts. This chapter provides an overview of the issues involved in analysing the effects of military spending on growth. It considers the alternative general economic theories that inform the development of models to undertake empirical analyses, and estimation issues in undertaking those analyses. The Feder-Ram model, the modified Solow and the endogenous growth models, are discussed in detail, before being estimated to illustrate the issues involved in estimating the models and to compare their performance.

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File URL: http://carecon.org.uk/DPs/1012.pdf
File Function: First version, 2010
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Bibliographic Info

Paper provided by Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol in its series Working Papers with number 1012.

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Length: 23 pages
Date of creation: Oct 2010
Date of revision:
Handle: RePEc:uwe:wpaper:1012

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Phone: 0117 328 3610
Web page: http://www1.uwe.ac.uk/bl/research/bristoleconomics.aspx
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Related research

Keywords: Military spending; growth; panels spending; semi-parametric estimation;

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References

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  1. Knight, Malcolm & Loayza, Norman & Villanueva, Delano, 1996. "The peace dividend : military spending cuts and economic growth," Policy Research Working Paper Series 1577, The World Bank.
  2. International Monetary Fund, 2000. "Corruption and Military Spending," IMF Working Papers 00/23, International Monetary Fund.
  3. Giorgio d'Agostino & Luca Pieroni & J Paul Dunne, 2011. "Corruption, Military Spending and Growth," Working Papers 1103, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
  4. Pieroni, Luca & d'Agostino, Giorgio & Lorusso, Marco, 2008. "Can we declare military Keynesianism dead?," Journal of Policy Modeling, Elsevier, vol. 30(5), pages 675-691.
  5. Peter Batchelor & J. Paul Dunne & David Saal, 2000. "Military spending and economic growth in South Africa," Defence and Peace Economics, Taylor & Francis Journals, vol. 11(4), pages 553-571.
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  23. Jhy-Yuan Shieh & Wen-Ya Chang & Ching-Chong Lai, 2007. "An Endogenous Growth Model Of Capital And Arms Accumulation," Defence and Peace Economics, Taylor & Francis Journals, vol. 18(6), pages 557-575.
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Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Are military expenses good for growth?
    by Economic Logician in Economic Logic on 2010-12-03 15:13:00
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
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Cited by:
  1. Shahbaz Muhammad & Carlos Leitao Nuno & Salah Uddin Ghazi & Mohamed Arouri & Frederic Teulon, 2014. "Should Portuguese Economy Invest in Defense Spending? A Revisit," Working Papers 2014-380, Department of Research, Ipag Business School.
  2. d'Agostino, Giorgio & Dunne, John Paul & Pieroni, Luca, 2013. "Military Expenditure, Endogeneity and Economic Growth," MPRA Paper 45640, University Library of Munich, Germany.
  3. J Paul Dunne & Ron P. Smith, 2010. "Military Expenditure and Granger Causality: A Critical Review," Working Papers 1007, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.

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  1. Economic Logic blog

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