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Military Spending and Growth: The Role of Institutions

Author

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  • Ryan A. Compton
  • Bryan Paterson

Abstract

Recent literature on whether military spending affects economic growth argues that the relationship may be a conditional one. We add to this literature by considering the role that ‘good institutions’ play in the effect of military spending on growth. Using data from a sample of over 100 countries from 1988 to 2010, our analysis suggests that the effect of military spending on growth is generally negative or zero at best, and this effect is mitigated in the presence of good economic and political institutions.

Suggested Citation

  • Ryan A. Compton & Bryan Paterson, 2016. "Military Spending and Growth: The Role of Institutions," Defence and Peace Economics, Taylor & Francis Journals, vol. 27(3), pages 301-322, June.
    • Handle: RePEc:taf:defpea:v:27:y:2016:i:3:p:301-322
    DOI: 10.1080/10242694.2015.1060022
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    References listed on IDEAS

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