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Defense Spending and Unemployment in France

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  • Julien Malizard

Abstract

France has received little attention in the literature of defense economics, despite some outstanding features of the country's situation. This study attempts to partially fill this gap with new empirical evidence which evaluates the influence of military expenditure on the unemployment rate between 1975 and 2008. Our estimation is based on the ARDL approach to cointegration. The results reveal that both defense and non-defense spending exert a negative influence on unemployment but that defense spending has a higher negative impact.

Suggested Citation

  • Julien Malizard, 2014. "Defense Spending and Unemployment in France," Defence and Peace Economics, Taylor & Francis Journals, vol. 25(6), pages 635-642, December.
  • Handle: RePEc:taf:defpea:v:25:y:2014:i:6:p:635-642
    DOI: 10.1080/10242694.2013.857450
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    File URL: http://hdl.handle.net/10.1080/10242694.2013.857450
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    References listed on IDEAS

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    1. Philippe Aghion & Peter Howitt, 1994. "Growth and Unemployment," Review of Economic Studies, Oxford University Press, vol. 61(3), pages 477-494.
    2. Satya Paul, 1996. "Defence spending and unemployment rates: An empirical analysis for the OECD," Journal of Economic Studies, Emerald Group Publishing, vol. 23(2), pages 44-54, May.
    3. Julien Malizard, 2013. "Opportunity Cost Of Defense: An Evaluation In The Case Of France," Defence and Peace Economics, Taylor & Francis Journals, vol. 24(3), pages 247-259, June.
    4. Paresh Kumar Narayan, 2005. "The saving and investment nexus for China: evidence from cointegration tests," Applied Economics, Taylor & Francis Journals, vol. 37(17), pages 1979-1990.
    5. J. Paul Dunne & Ron Smith & Dirk Willenbockel, 2005. "Models Of Military Expenditure And Growth: A Critical Review," Defence and Peace Economics, Taylor & Francis Journals, vol. 16(6), pages 449-461.
    6. Jenn-Hong Tang & Cheng-Chung Lai & Eric Lin, 2009. "Military Expenditure And Unemployment Rates: Granger Causality Tests Using Global Panel Data," Defence and Peace Economics, Taylor & Francis Journals, vol. 20(4), pages 253-267.
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    Citations

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    Cited by:

    1. Devi Prasad DASH & Debi Prasad BAL & Manoranjan SAHOO, 2016. "Nexus between defense expenditure and economic growth in BRIC economies: An empirical investigation," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(1(606), S), pages 89-102, Spring.
    2. repec:eee:spacre:v:19:y:2016:i:2:p:169-180 is not listed on IDEAS
    3. Cosimo Magazzino & Lorenzo Giolli & Marco Mele, 2015. "Wagner’s Law and Peacock and Wiseman’s Displacement Effect in European Union Countries: A Panel Data Study," International Journal of Economics and Financial Issues, Econjournals, vol. 5(3), pages 812-819.
    4. repec:taf:defpea:v:28:y:2017:i:6:p:686-702 is not listed on IDEAS
    5. Ming Zhong & Tsangyao Chang & D. P. Tang & Yemane Wolde-Rufael, 2015. "The causal nexus between military spending and unemployment in the G7: a bootstrap panel causality test," Defence and Peace Economics, Taylor & Francis Journals, vol. 26(6), pages 609-622, December.
    6. repec:exl:25engi:v:27:y:2016:i:3:p:246-252 is not listed on IDEAS
    7. Suna Korkmaz, 2015. "The Effect of Military Spending on Economic Growth and Unemployment in Mediterranean Countries," International Journal of Economics and Financial Issues, Econjournals, vol. 5(1), pages 273-280.
    8. Muhammad Azam & Faisal Khan & Khalid Zaman & Amran Md. Rasli, 2016. "Military Expenditures and Unemployment Nexus for Selected South Asian Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 127(3), pages 1103-1117, July.

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