Defence Spending and Economic Growth in the EU15
AbstractOver the last 30 years there has been an impressive amount of empirical work on the defence-growth nexus, using different methodologies, models and econometric techniques and focusing on individual case studies, cross-country studies or panel data studies. Despite the number and the variety of studies, the evidence on the defence-growth relationship is still far from conclusive. Rather surprisingly, very limited work has been published in the relevant literature for the European Union despite the continuous discussions for a Common European Defence Policy that would require an assessment of the economic effects of defence in this region. To fill in the gap in the literature, this paper employs an augmented Solow-Swan model and estimates it both with panel and time series methods to provide empirical evidence on the economic effects of defence spending in the EU15 over the period 1961-2007. Overall, evidence derived from both panel and time series methods is consistent and suggests that military burden does not promote economic growth in this region.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper 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 1102.
Length: 16 pages
Date of creation: Mar 2011
Date of revision:
Contact details of provider:
Postal: Frenchay Campus, Coldharbour Lane, Bristol BS16 1QY
Phone: 0117 328 3610
Web page: http://www1.uwe.ac.uk/bl/research/bristoleconomics.aspx
More information through EDIRC
Defence Spending; Economic Growth; Panel data; time series; EU15;
Other versions of this item:
- H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-03-19 (All new papers)
- NEP-EEC-2011-03-19 (European Economics)
- NEP-FDG-2011-03-19 (Financial Development & Growth)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Bove, Vincenzo & Efthyvoulou, Georgios, 2013.
"Political Cycles in Public Expenditure: Butter vs Guns,"
NEPS Working Papers
7/2013, Network of European Peace Scientists.
- Vincenzo Bove & Georgios Efthyvoulou, 2013. "Political Cycles in Public Expenditure: Butter vs. Guns," Working Papers 2013016, The University of Sheffield, Department of Economics.
- Paul Dunne & Eftychia Nikolaidou, 2005.
"Military Spending and Economic Growth in Greece, Portugal and Spain,"
0510, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
- J Paul Dunne, Eftychia Nikolaidou, 2005. "Military Spending and Economic Growth in Greece, Portugal and Spain," Frontiers in Finance and Economics, SKEMA Business School, vol. 2(1), pages 1-17, June.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Felix Ritchie).
If references are entirely missing, you can add them using this form.