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U.S. Troops and Foreign Economic Growth

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  • G. Jones
  • T. Kane

Abstract

Do American troops help or hinder economic growth in other countries? We consider a newly constructed dataset of the deployment of U.S. troops over the years 1950--2000 and discover a positive relationship between deployed troops and host country economic growth, which is robust to multiple control variables. Each tenfold increase in U.S. troops is associated with a one--third percentage point increase in average host country annual growth. We explore three possible causal explanations: a Keynesian aggregate demand boost; the diffusion of institutions; and security. Extensive econometric testing, including the use of panel data, confirms the core relationship.

Suggested Citation

  • G. Jones & T. Kane, 2012. "U.S. Troops and Foreign Economic Growth," Defence and Peace Economics, Taylor & Francis Journals, vol. 23(3), pages 225-249, June.
    • Handle: RePEc:taf:defpea:v:23:y:2012:i:3:p:225-249
    DOI: 10.1080/10242694.2011.585043
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    References listed on IDEAS

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    Cited by:

    1. Christopher Coyne & Abigail Hall, 2014. "The empire strikes back: Adam Smith, John Stuart Mill, and the Robust Political Economy of empire," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 27(4), pages 359-385, December.
    2. Vincenzo Bove & Leandro Elia & Petros G. Sekeris, 2014. "US Security Strategy and the Gains from Bilateral Trade," Review of International Economics, Wiley Blackwell, vol. 22(5), pages 863-885, November.

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