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Greece, Portugal, Spain: New evidence on the economic effects of military expenditure using the new SIPRI data

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  • Eftychia Nikolaidou

    (Department of Economics, University of Cape Town, South Africa)

Abstract

This article first compares old with newly updated and extended SIPRI military expenditure data for Greece, Portugal, and Spain. Using the new data to confirm or reject earlier findings, it then replicates a Solow growth model application employed in a 2012 study by Dunne and Nikolaidou. In addition, the article provides new evidence on the military expenditure–economic growth nexus for these three countries using the extended data that now cover the post-global financial crisis and European debt crisis years. The use of the new SIPRI data does not lead to rejection of the earlier findings for Greece and Portugal but does reject the formerly negative and statistically significant effect of military burden on growth for the case of Spain.

Suggested Citation

  • Eftychia Nikolaidou, 2016. "Greece, Portugal, Spain: New evidence on the economic effects of military expenditure using the new SIPRI data," Economics of Peace and Security Journal, EPS Publishing, vol. 11(2), pages 20-27, October.
    • Handle: RePEc:epc:journl:v:11:y:2016:i:2:p:20-27
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    File URL: http://www.epsjournal.org.uk/index.php/EPSJ/article/view/256
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    References listed on IDEAS

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    1. John Paul Dunne & Eftychia Nikolaidou, 2012. "Defence Spending And Economic Growth In The Eu15," Defence and Peace Economics, Taylor & Francis Journals, vol. 23(6), pages 537-548, December.
    2. David H. Romer, 2000. "Keynesian Macroeconomics without the LM Curve," Journal of Economic Perspectives, American Economic Association, vol. 14(2), pages 149-169, Spring.
    3. John B. Taylor, 2000. "Teaching Modern Macroeconomics at the Principles Level," American Economic Review, American Economic Association, vol. 90(2), pages 90-94, May.
    4. Ram, Rati, 1986. "Government Size and Economic Growth: A New Framework and Some Evidencefrom Cross-Section and Time-Series Data," American Economic Review, American Economic Association, vol. 76(1), pages 191-203, March.
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    Cited by:

    1. Hanson Robert & Jeon Joo Young, 2024. "The Military Expenditure – Economic Growth Nexus Revisited: Evidence from the United Kingdom," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 30(2), pages 207-248.
    2. Ourania Dimitraki & Kyriakos Emmanouilidis, 2024. "Analysis of the Economic Effects of Defence Spending in Spain: A Re-Examination Through Dynamic ARDL Simulations and Kernel-Based Regularized Least Squares," Defence and Peace Economics, Taylor & Francis Journals, vol. 35(7), pages 908-930, October.
    3. Duygu Yolcu Karadam & Nadir Öcal & Jülide Yildirim, 2023. "Distinct Asymmetric Effects of Military Spending on Economic Growth for Different Income Groups of Countries," Defence and Peace Economics, Taylor & Francis Journals, vol. 34(4), pages 477-494, May.
    4. Kyriakos Emmanouilidis & Christos Karpetis, 2022. "Cross–Country Dependence, Heterogeneity and the Growth Effects of Military Spending," Defence and Peace Economics, Taylor & Francis Journals, vol. 33(7), pages 842-856, October.
    5. Kyriakos Emmanouilidis & Christos Karpetis, 2020. "The Defense–Growth Nexus: A Review of Time Series Methods and Empirical Results," Defence and Peace Economics, Taylor & Francis Journals, vol. 31(1), pages 86-104, January.
    6. Ricardo Ferraz, 2022. "The Portuguese Military Expenditure from a Historical Perspective," Defence and Peace Economics, Taylor & Francis Journals, vol. 33(3), pages 347-365, April.
    7. Tsitouras Antonis & Tsounis Nicholas, 2024. "Military Outlays and Economic Growth: A Nonlinear Disaggregated Analysis for a Developed Economy," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 30(3), pages 341-391.

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    More about this item

    Keywords

    Greece; Spain; Portugal; military expenditure; growth;
    All these keywords.

    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War

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