IDEAS home Printed from https://ideas.repec.org/a/sae/compsc/v14y1995i1p25-47.html
   My bibliography  Save this article

Arab-Israeli Defense Spending and Economic Growth

Author

Listed:
  • Karl R. DeRouen Jr.

    (Economists Allied for Arms Reduction-Israel)

Abstract

Research on the nexus between defense spending and economic growth in the Third World has generated discrepant findings. This debate takes on added relevance in the wake of recent substantive moves toward peace in the Middle East. This study considers the relationship between defense spending and economic growth over time in the Middle East. It also addresses the externality effects defense spending has on the economies. Contextual factors such as aims production and regime type of Egypt, Israel, Jordan and Syria are put forth as possible explanations of the disparate findings to date. The findings suggest that the potential for peace dividends in Egypt and Syria is contingent upon increases in allocations to non-defense government spending. For Israel defense cuts alone may actually hinder growth in the short run. In Jordan, the defense sector is shown to be surprisingly productive and therefore any potential peace dividend must rely upon cooperative regional ventures, and not defense cuts.

Suggested Citation

  • Karl R. DeRouen Jr., 1995. "Arab-Israeli Defense Spending and Economic Growth," Conflict Management and Peace Science, Peace Science Society (International), vol. 14(1), pages 25-47, February.
    • Handle: RePEc:sae:compsc:v:14:y:1995:i:1:p:25-47
    DOI: 10.1177/073889429501400102
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/073889429501400102
    Download Restriction: no
    File URL: https://libkey.io/10.1177/073889429501400102?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. 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 361-372, January.
    2. 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.
    3. McGuire, Martin C, 1987. "Foreign Assistance, Investment, and Defense: A Methodological Study with an Application to Israel, 1960-1979," Economic Development and Cultural Change, University of Chicago Press, vol. 35(4), pages 847-873, July.
    4. Lim, David, 1983. "Another Look at Growth and Defense in Less Developed Countries," Economic Development and Cultural Change, University of Chicago Press, vol. 31(2), pages 377-384, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Aamer Abu-Qarn, 2010. "The Defense-Growth Nexus: An Application for the Israeli-Arab Conflict," Working Papers 1003, Ben-Gurion University of the Negev, Department of Economics.
    2. 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.
    3. Aamer Abu-qarn, 2010. "The Defence-Growth Nexus Revisited: Evidence From The Israeli-Arab Conflict," Defence and Peace Economics, Taylor & Francis Journals, vol. 21(4), pages 291-300.
    4. repec:bgu:wpaper:163 is not listed on IDEAS
    5. Aamer S. Abu-Qarn, 2008. "Six decades of the Israeli-Arab conflict: An assessment of the economic aspects," Economics of Peace and Security Journal, EPS Publishing, vol. 3(2), pages 8-15, July.
    6. Henryk Gurgul & Łukasz Lach & Roland Mestel, 2012. "The relationship between budgetary expenditure and economic growth in Poland," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 20(1), pages 161-182, March.
    7. Po‐Sheng Lin & Cheng‐Te Lee, 2012. "Military Spending, Threats And Stochastic Growth," Bulletin of Economic Research, Wiley Blackwell, vol. 64(1), pages 8-19, January.
    8. Lin Hung-Pin & Tsung-Li Wang & Cheng-Lang Yang, 2016. "Further Causality Evidence on Arms Race, Inflation and Economic Growth," ECONOMIC COMPUTATION AND ECONOMIC CYBERNETICS STUDIES AND RESEARCH, Faculty of Economic Cybernetics, Statistics and Informatics, vol. 50(2), pages 123-136.
    9. Cheng-te Lee & Shang-fen Wu, 2015. "Military Spending and Stochastic Growth: A Small Open Economy," Economics Bulletin, AccessEcon, vol. 35(4), pages 2026-2036.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Albert J.F. Yang & William N. Trumbull & Chin Wei Yang & Bwo‐Nung Huang, 2011. "On The Relationship Between Military Expenditure, Threat, And Economic Growth: A Nonlinear Approach," Defence and Peace Economics, Taylor & Francis Journals, vol. 22(4), pages 449-457, April.
    2. Dimitrios Paparas & Christian Richter, 2015. "Fiscal policy and economic growth: Empirical evidence from the European Union," Working Papers 2015.06, International Network for Economic Research - INFER.
    3. 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.
    4. Alptekin, Aynur & Levine, Paul, 2012. "Military expenditure and economic growth: A meta-analysis," European Journal of Political Economy, Elsevier, vol. 28(4), pages 636-650.
    5. repec:aoj:growth:v:8:y:2021:i:1:p:12-26:id:3151 is not listed on IDEAS
    6. repec:bgu:wpaper:163 is not listed on IDEAS
    7. Nijkamp, Peter & Poot, Jacques, 2004. "Meta-analysis of the effect of fiscal policies on long-run growth," European Journal of Political Economy, Elsevier, vol. 20(1), pages 91-124, March.
    8. Dimitrios PAPARAS & Christian RICHTER & Alexandros PAPARAS, 2016. "Military Spending and Economic Growth in Greece and the Arms Race between Greece and Turkey," Journal of Economics Library, KSP Journals, vol. 3(1), pages 38-56, March.
    9. Muhammad Shahbaz & Talat Afza & Muhammad Shahbaz Shabbir, 2013. "Does Defence Spending Impede Economic Growth? Cointegration And Causality Analysis For Pakistan," Defence and Peace Economics, Taylor & Francis Journals, vol. 24(2), pages 105-120, April.
    10. Chang, Hsin-Chen & Huang, Bwo-Nung & Yang, Chin Wei, 2011. "Military expenditure and economic growth across different groups: A dynamic panel Granger-causality approach," Economic Modelling, Elsevier, vol. 28(6), pages 2416-2423.
    11. Poot, Jacques, 1999. "A meta-analytic study of the role of government in long-run economic growth," ERSA conference papers ersa99pa171, European Regional Science Association.
    12. Peter Nijkamp & Jacques Poot, Victoria, 2002. "Meta-Analysis of the Impact of Fiscal Policies on Long-Run Growth," Tinbergen Institute Discussion Papers 02-028/3, Tinbergen Institute, revised 23 Apr 2003.
    13. W. Robert Reed & Nurul Sidek, 2013. "A Replication of "Meta-Analysis of the Effect of Fiscal Policies on Long-Run Growth" (European Journal of Political Economy, 2004)," Working Papers in Economics 13/33, University of Canterbury, Department of Economics and Finance.
    14. Odedokun, M. O., 1996. "Alternative econometric approaches for analysing the role of the financial sector in economic growth: Time-series evidence from LDCs," Journal of Development Economics, Elsevier, vol. 50(1), pages 119-146, June.
    15. Oasis Kodila-Tedika & Sherif Khalifa, 2021. "African Junta and Defence Spending: A Capture Effect or Self-preservation? [A Theory of Military Dictatorships]," Journal of African Economies, Centre for the Study of African Economies, vol. 30(3), pages 285-300.
    16. Gurgul, Henryk & Lach, Łukasz, 2011. "Causality analysis between public expenditure and economic growth of Polish economy in last decade," MPRA Paper 52281, University Library of Munich, Germany.
    17. Shreesh Chary, 2023. "The nexus between arms imports, military expenditures and economic growth of the top arms importers in the world: a pooled mean group approach," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 51(4), pages 808-822, August.
    18. Tiwari, Aviral & Shahbaz, Muhammad, 2011. "Does Defence Spending Stimulate Economic Growth in India?," MPRA Paper 30880, University Library of Munich, Germany, revised 18 Apr 2011.
    19. Dimitrios PAPARAS & Christian RICHTER & Alexandros PAPARAS, 2015. "Fiscal Policy and Economic Growth, Empirical Evidence in European Union," Turkish Economic Review, KSP Journals, vol. 2(4), pages 239-268, December.
    20. Sefa Awaworyi Churchill & Siew Ling Yew, 2018. "The effect of military expenditure on growth: an empirical synthesis," Empirical Economics, Springer, vol. 55(3), pages 1357-1387, November.
    21. Abdur R. Chowdhury, 1991. "A Causal Analysis of Defense Spending and Economic Growth," Journal of Conflict Resolution, Peace Science Society (International), vol. 35(1), pages 80-97, March.
    22. Alexamder, W.R. & Hansen, P. Author-Emai, 2004. "A Criritique of the Multi-Sector Model of the Effects of Military Spending on Economic Growth," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 4(2).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:compsc:v:14:y:1995:i:1:p:25-47. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://pss.la.psu.edu/ .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.