IDEAS home Printed from https://ideas.repec.org/a/taf/defpea/v18y2007i6p519-535.html
   My bibliography  Save this article

Military Expenditures And Inequality: Empirical Evidence From Global Data

Author

Abstract

A substantial body of literature has uncovered a robust relationship between institutions including unionization and political democracy and economic inequality. This paper examines the effect of military spending on inequality, controlling for the size of the armed forces, GDP growth, per capita income, and other possible determinants. Using a panel regression with country level observations from 1987-1997, we obtained consistent estimates that there is a positive effect of military expenditure on pay inequality. This relationship is robust across variable definitions and model specifications. Given the close relationship between pay and income, this result suggests that a country's increases in military spending could increase income inequality.

Suggested Citation

  • Hamid Ali, 2007. "Military Expenditures And Inequality: Empirical Evidence From Global Data," Defence and Peace Economics, Taylor & Francis Journals, vol. 18(6), pages 519-535.
  • Handle: RePEc:taf:defpea:v:18:y:2007:i:6:p:519-535 DOI: 10.1080/10242690701331501
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/10242690701331501
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Erich Weede, 1992. "Some Simple Calculations on Democracy and War Involvement," Journal of Peace Research, Peace Research Institute Oslo, vol. 29(4), pages 377-383, November.
    2. repec:ucp:bkecon:9780226422534 is not listed on IDEAS
    3. Albert O. Hirschman & Michael Rothschild, 1973. "The Changing Tolerance for Income Inequality in the Course of Economic DevelopmentWith A Mathematical Appendix," The Quarterly Journal of Economics, Oxford University Press, vol. 87(4), pages 544-566.
    4. Lindert, Peter H. & Williamson, Jeffrey G., 1985. "Growth, equality, and history," Explorations in Economic History, Elsevier, vol. 22(4), pages 341-377, October.
    5. Simon Kuznets & Elizabeth Jenks, 1953. "Shares of Upper Income Groups in Income and Savings," NBER Books, National Bureau of Economic Research, Inc, number kuzn53-1.
    6. Hirschman, Albert O., 1973. "The changing tolerance for income inequality in the course of economic development," World Development, Elsevier, vol. 1(12), pages 29-36, December.
    7. Erich Weede, 1984. "Democracy and War Involvement," Journal of Conflict Resolution, Peace Science Society (International), pages 649-664.
    8. J. L. Van Zanden, 1995. "Tracing the beginning of the Kuznets curve: western Europe during the early modern period," Economic History Review, Economic History Society, vol. 48(4), pages 643-664, November.
    9. Stuart A. Bremer, 1992. "Dangerous Dyads," Journal of Conflict Resolution, Peace Science Society (International), pages 309-341.
    10. Acemoglu,Daron & Robinson,James A., 2009. "Economic Origins of Dictatorship and Democracy," Cambridge Books, Cambridge University Press, number 9780521671422, December.
    11. Simon Kuznets, 1950. "Shares of Upper Income Groups in Income and Savings," NBER Books, National Bureau of Economic Research, Inc, number kuzn50-1.
    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. Muhammad Shahbaz & Reza Sherafatian-Jahromi & Muhammad Nasir Malik & Muhammad Shahbaz Shabbir & Farooq Ahmed Jam, 2016. "Linkages between defense spending and income inequality in Iran," Quality & Quantity: International Journal of Methodology, Springer, pages 1317-1332.
    2. Ucal, Meltem & Karabulut, Gokhan & Bilgin, Mehmet Huseyin, 2009. "Military Expenditures and Inequality: Empirical Evidence from Israel," MPRA Paper 48643, University Library of Munich, Germany.
    3. Töngür, Ünal & Hsu, Sara & Elveren, Adem Yavuz, 2015. "Military expenditures and political regimes: Evidence from global data, 1963–2000," Economic Modelling, Elsevier, vol. 44(C), pages 68-79.
    4. Syed Ali Raza & Muhammad Shahbaz & Sudharshan Reddy Paramati, 2017. "Dynamics of Military Expenditure and Income Inequality in Pakistan," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, pages 1035-1055.
    5. Adem Y. Elveren, 2012. "Military Spending and Income Inequality:Evidence on Cointegration and Causality for Turkey,1963--2007," Defence and Peace Economics, Taylor & Francis Journals, pages 289-301.
    6. Tausch, Arno, 2016. "‘Smart development’. An essay on a new political economy of the environment," MPRA Paper 70204, University Library of Munich, Germany.
    7. Christos Kollias & Suzanna-Maria Paleologou, 2011. "The Macroeconomic Effects of Conflict: Three Case Studies," Chapters,in: Handbook on the Economics of Conflict, chapter 14 Edward Elgar Publishing.
    8. Muhammad Shahbaz & Reza Sherafatian-Jahromi & Muhammad Nasir Malik & Muhammad Shahbaz Shabbir & Farooq Ahmed Jam, 2016. "Linkages between defense spending and income inequality in Iran," Quality & Quantity: International Journal of Methodology, Springer, pages 1317-1332.
    9. Knobel, Alexander & Chokaev, Bekhan & Mironov, Alexey, 2015. "Comparative Analysis of the Effectiveness of Public Spending in the Field of National Defense and Law Enforcement," Published Papers mn47, Russian Presidential Academy of National Economy and Public Administration.
    10. Arno Tausch & Almas Heshmati, 2013. "Worker remittances and the global preconditions of ‘smart development’," Society and Economy, Akadémiai Kiadó, Hungary, vol. 35(1), pages 25-50, April.
    11. Arno Tausch & Almas Heshmati, 2012. "Migration, Openness and the Global Preconditions of "Smart Development"," Bogazici Journal, Review of Social, Economic and Administrative Studies, Bogazici University, Department of Economics, pages 1-62.
    12. Eric S. Lin & Hamid E. Ali, 2009. "Military Spending and Inequality: Panel Granger Causality Test," Journal of Peace Research, Peace Research Institute Oslo, vol. 46(5), pages 671-685, September.
    13. Tausch, Arno, 2011. "Globalization as a driver or bottleneck for sustainable development. General tendencies and European implications," MPRA Paper 33227, University Library of Munich, Germany.
    14. Unal Tongur & Sara Hsu & Adem Yavuz Elveren, 2013. "Military Expenditures and Political Regimes: An Analysis Using Global Data, 1963-2001," ERC Working Papers 1307, ERC - Economic Research Center, Middle East Technical University, revised Jul 2013.
    15. Unal Tongur & Adem Yavuz Elveren, 2012. "Military Expenditures, Inequality, and Welfare and Political Regimes: A Dynamic Panel Data Analysis," ERC Working Papers 1210, ERC - Economic Research Center, Middle East Technical University, revised Dec 2012.
    16. Tesfaye A. Gebremedhin & Astghik Mavisakalyan, 2013. "Immigration and Political Instability," Kyklos, Wiley Blackwell, vol. 66(3), pages 317-341, August.
    17. Tausch, Arno, 2015. "Globalization, the environment and the future “greening” of Arab politics," MPRA Paper 64511, University Library of Munich, Germany.
    18. Ali Hamid E., 2011. "Military Expenditures and Human Development: Guns and Butter Arguments Revisited: A Case Study from Egypt," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 17(1), pages 1-21, September.
    19. Raza, Syed Ali & Shahbaz, Muhammad, 2014. "To Battle Income Inequality, Focus on Military Expenditures: Lesson from Pakistan," MPRA Paper 57773, University Library of Munich, Germany.

    More about this item

    Keywords

    Military spending; Inequality;

    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:taf:defpea:v:18:y:2007:i:6:p:519-535. 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: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/GDPE20 .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.