IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Lost Productivity and Defense Burden of the Southern Cone of Latin America: A Page from History

Listed author(s):
  • Marwah Kanta


    (Carleton University)

  • Klein Lawrence R.

    (University of Pennsylvania)

An attempt is made to measure the loss of productivity and growth due to excessive military expenditures of five countries in the Southern Cone of Latin America during the 1970's and 1980's. These countries are Argentina, Bolivia, Chile, Paraguay and Peru. A transcendental production function that incorporates a ratio of military expenditures to GDP as a separate input factor is estimated for each country. The elasticity coefficients demonstrate a significant trade-off between military and nonmilitary spending from the supply side. For every one percentage aggregate growth point, growth of military share saps 0.048 in Argentina, 0.013 in Bolivia, 0.043 in Chile, 0.173 in Paraguay, and 0.071 in Peru. A counterfactual new scenario is simulated by reducing military shares of GDP to one percent. The results show that these five countries lost on an average 1.5 percent of growth due to excessive defense burden during 1971-1991.

If 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.

File URL:
Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by De Gruyter in its journal Peace Economics, Peace Science, and Public Policy.

Volume (Year): 11 (2005)
Issue (Month): 1 (May)
Pages: 1-30

in new window

Handle: RePEc:bpj:pepspp:v:11:y:2005:i:1:n:1
Contact details of provider: Web page:

Order Information: Web:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

in new window

  1. Dakurah, A. Henry & Davies, Stephen P. & Sampath, Rajan K., 2001. "Defense spending and economic growth in developing countries: A causality analysis," Journal of Policy Modeling, Elsevier, vol. 23(6), pages 651-658, August.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:bpj:pepspp:v:11:y:2005:i:1:n:1. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Golla)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.