The Impact of Defense Expenditure on Economic Growth
The goal of this paper is to analyze the relationship between defense expenditures and economic growth in Romania, trying to find out the existence, direction and intensity of this connection. The methods which I used are cluster analysis, quintile analysis, regression technique and Granger causality. The results suggest that in Romania there is a negative correlation. A potential cause of the negative effect of defense expenditures on economic growth in Romania is the high proportion of the spending on equipment and other operational spending. Also I have considered the implications of the budgetary restriction – the limited resources might be given priority for other programs.
Volume (Year): (2010)
Issue (Month): 4 (December)
|Contact details of provider:|| Postal: |
Phone: 004 021 3188148
Fax: 004 021 3188148
Web page: http://www.ipe.ro/
More information through EDIRC
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.:
- Abu-Bader, Suleiman & Abu-Qarn, Aamer S., 2003.
"Government expenditures, military spending and economic growth: causality evidence from Egypt, Israel, and Syria,"
Journal of Policy Modeling,
Elsevier, vol. 25(6-7), pages 567-583, September.
- Abu-Bader, Suleiman & Abu-Qarn, Aamer, 2003. "Government Expenditures, Military Spending and Economic Growth: Causality Evidence from Egypt, Israel and Syria," MPRA Paper 1115, University Library of Munich, Germany.
- Suleiman Abu-Bader & Aamer Abu-Qarn, 2003. "Government Expenditures, Military Spending and Economic Growth: Causality Evidence from Egypt, Israel and Syria," Working Papers 163, Ben-Gurion University of the Negev, Department of Economics.
- Jere H. Behrman, 1976. "Economic Growth," NBER Chapters, in: Foreign Trade Regimes and Economic Development: Chile, pages 268-292 National Bureau of Economic Research, Inc.
- Jesús Crespo Guaresma & Gerhard Reitschuler, 2003.
""Guns or Butter?" Revisited: Robustness and Nonlinearity Issues in the Defense-Grotwth Nexus,"
Vienna Economics Papers
0310, University of Vienna, Department of Economics.
- Jes�s Crespo Cuaresma & Gerhard Reitschuler, 2006. "'Guns Or Butter?' Revisited: Robustness And Nonlinearity Issues In The Defense-Growth Nexus," Scottish Journal of Political Economy, Scottish Economic Society, vol. 53(4), pages 523-541, 09.
- Habibullah, M.S. & Law, Siong-Hook & Dayang-Afizzah, A.M., 2008. "Defense spending and economic growth in Asian economies: A panel error-correction approach," MPRA Paper 12105, University Library of Munich, Germany.
- Michael Gerace, 2002. "US Military Expenditures and Economic Growth: Some Evidence from Spectral Methods," Defence and Peace Economics, Taylor & Francis Journals, vol. 13(1), pages 1-11.
- Laura Obreja Brasoveanu & Iulian Brasoveanu, 2008. "The Correlation between Fiscal Policy and Economic Growth," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 7(7(524)), pages 19-26, July.
- Herschel I. Grossman & Juan Mendoza, 1999.
"Butter and Guns: Complementarity between Economic and Military Competition,"
99-14, Brown University, Department of Economics.
- Herschel I. Grossman & Juan Mendoza, 2001. "Butter and guns: Complementarity between economic and military competition," Economics of Governance, Springer, vol. 2(1), pages 25-33, 03.
- Niloy Bose & M. Emranul Haque & Denise R. Osborn, 2007. "Public Expenditure And Economic Growth: A Disaggregated Analysis For Developing Countries," Manchester School, University of Manchester, vol. 75(5), pages 533-556, 09.
- Selami Sezgin & Julide Yildirim, 2002. "The Demand for Turkish Defence Expenditure," Defence and Peace Economics, Taylor & Francis Journals, vol. 13(2), pages 121-128.
- Joerding, Wayne, 1986. "Economic growth and defense spending : Granger Causality," Journal of Development Economics, Elsevier, vol. 21(1), pages 35-40, April.
When requesting a correction, please mention this item's handle: RePEc:rjr:romjef:v::y:2010:i:4:p:148-167. 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: (Corina Saman)
If references are entirely missing, you can add them using this form.