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War and Economic Growth: An Analysis Based on Extended Solow Model

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  • Katarzyna Filipowicz
  • Adam Krawiec
  • Tomasz Tokarski

Abstract

This paper presents an analysis of the dynamics of economic growth in war and post-war periods. For this purpose, we introduce an extended neoclassical model of economic growth with the civilian and military production sectors which is based on the Solow model. The war period is characterized by gradual transfer of capital and labor from the civilian sector to the military sector. The negative impact of war on capital stock and population is also examined. We find that war has only a transient effect on a long-run equilibrium. However, its short-run dynamics is determined by initial conditions imposed on the economy at the beginning of war and the characteristics of the war itself.

Suggested Citation

  • Katarzyna Filipowicz & Adam Krawiec & Tomasz Tokarski, 2025. "War and Economic Growth: An Analysis Based on Extended Solow Model," Defence and Peace Economics, Taylor & Francis Journals, vol. 36(6), pages 825-839, August.
    • Handle: RePEc:taf:defpea:v:36:y:2025:i:6:p:825-839
    DOI: 10.1080/10242694.2024.2435280
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