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Country survey XIX: Mexico


  • Eduardo Morales Ramos


This paper presents a survey of Mexican military expenditure (ME), which assesses the role of ME in Mexican economic growth. After presenting a description of the armed forces, Mexican military policy and the Mexico-US military relationship, this paper outlines a demand-supply model to analyse the effects of ME on growth. The empirical results suggest interesting insights on the ME-growth relationship for the Mexican case. These results present evidence against the crowding-out hypothesis of ME on growth. For the Mexican case, ME produces a positive effect on growth.

Suggested Citation

  • Eduardo Morales Ramos, 2004. "Country survey XIX: Mexico," Defence and Peace Economics, Taylor & Francis Journals, vol. 15(1), pages 83-99, February.
  • Handle: RePEc:taf:defpea:v:15:y:2004:i:1:p:83-99 DOI: 10.1080/1024269042000164513

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    References listed on IDEAS

    1. Lahera, Eugenio & Ortúzar, Marcelo, 1998. "Military expenditure and development in Latin America," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    2. James Murdoch & Chung-Ron Pi & Todd Sandler, 1997. "The impact of defense and non-defense public spending on growth in Asia and Latin America," Defence and Peace Economics, Taylor & Francis Journals, vol. 8(2), pages 205-224.
    3. Ã…dne Cappelen & Nils Petter Gleditsch & Olav Bjerkholt, 1984. "Military Spending and Economic Growth in the OECD Countries," Journal of Peace Research, Peace Research Institute Oslo, vol. 21(4), pages 361-373, December.
    4. Eduardo Morales-Ramos, 2002. "Defence R&D expenditure: The crowding-out hypothesis," Defence and Peace Economics, Taylor & Francis Journals, vol. 13(5), pages 365-383.
    5. Granger, C W J, 1969. "Investigating Causal Relations by Econometric Models and Cross-Spectral Methods," Econometrica, Econometric Society, vol. 37(3), pages 424-438, July.
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    Cited by:

    1. Christos Kollias & Suzanna-Maria Paleologou & Panayiotis Tzeremes & Nickolaos Tzeremes, 2017. "Defence expenditure and economic growth in Latin American countries: evidence from linear and nonlinear causality tests," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 26(1), pages 1-25, December.

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