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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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Related research

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

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References

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  1. Paul Dunne & Dimitrios Vougas, 1999. "Military Spending and Economic Growth in South Africa," Journal of Conflict Resolution, Peace Science Society (International), vol. 43(4), pages 521-537, August.
  2. d'Agostino, G. & Dunne, J.P. & Pieroni, L., 2011. "Optimal military spending in the US: A time series analysis," Economic Modelling, Elsevier, vol. 28(3), pages 1068-1077, May.
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  5. Luca Pieroni & Giorgio D’Agostino & Marco Lorusso, 2008. "Can we declare military Keynesianism dead?," Quaderni del Dipartimento di Economia, Finanza e Statistica 44/2008, Università di Perugia, Dipartimento Economia, Finanza e Statistica.
  6. Biswas, Basudeb & Ram, Rati, 1986. "Military Expenditures and Economic Growth in Less Developed Countries: An Augmented Model and Further Evidence," Economic Development and Cultural Change, University of Chicago Press, vol. 34(2), pages 361-72, January.
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  21. Jenn-Hong Tang & Cheng-Chung Lai & Eric Lin, 2009. "Military Expenditure And Unemployment Rates: Granger Causality Tests Using Global Panel Data," Defence and Peace Economics, Taylor & Francis Journals, vol. 20(4), pages 253-267.
  22. Shieh, Jhy-yuan & Lai, Ching-chong & Chang, Wen-ya, 2002. "The impact of military burden on long-run growth and welfare," Journal of Development Economics, Elsevier, vol. 68(2), pages 443-454, August.
  23. Durmus Ozdemir & Ali Bayar, 2009. "The Peace Dividend Effect Of Turkish Convergence To The Eu: A Multi-Region Dynamic Cge Model Analysis For Greece And Turkey," Defence and Peace Economics, Taylor & Francis Journals, vol. 20(1), pages 69-78.
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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. J. Paul Dunne & Ron Smith, 2010. "Military Expenditure And Granger Causality: A Critical Review," Defence and Peace Economics, Taylor & Francis Journals, vol. 21(5-6), pages 427-441.
  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. 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.

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  1. Economic Logic blog

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