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Military spending and entrepreneurship: Spatial effects of cross†country spillovers

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  • Rajeev K. Goel
  • James W. Saunoris

Abstract

This paper uses a large cross†country panel data sample to examine the effects of military spending on entrepreneurship. The other major contribution of this work lies in studying the spatial cross†country influences of military spending on entrepreneurship. Placing the econometric model in the broader literature on the determinants of entrepreneurship, results show that while own military spending crowds out entrepreneurship in a country, bordering military spending promotes entrepreneurship. In other findings, we find interesting contrasts between the effects of government size and government quality, and between economic freedom and political freedom.

Suggested Citation

  • Rajeev K. Goel & James W. Saunoris, 2018. "Military spending and entrepreneurship: Spatial effects of cross†country spillovers," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 39(3), pages 363-373, April.
    • Handle: RePEc:wly:mgtdec:v:39:y:2018:i:3:p:363-373
    DOI: 10.1002/mde.2910
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    Cited by:

    1. Folorunsho M. Ajide, 2023. "Institutions and Entrepreneurship in Africa: Does Democracy Matter?," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 32(3), pages 553-589, November.
    2. Rajeev K. Goel & James W. Saunoris, 2020. "Does income inequality sand or grease the wheels of entrepreneurial activity? International evidence," Australian Economic Papers, Wiley Blackwell, vol. 59(2), pages 138-160, June.
    3. Mohammad Nourani & Wen‐Min Lu & Irene Wei Kiong Ting, 2020. "Vicarious warfare and dynamic efficiency of companies in the aerospace and defence industry," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(4), pages 641-650, June.
    4. Rajeev K. Goel & Michael A. Nelson, 2023. "Which political regimes foster entrepreneurship? An international examination," The Journal of Technology Transfer, Springer, vol. 48(1), pages 126-146, February.
    5. Sven Wolff & Christina Guenther & Petra Moog & David B. Audretsch, 2023. "The geography of the continuum of entrepreneurship activities—a first glance based on German data," The Journal of Technology Transfer, Springer, vol. 48(4), pages 1243-1273, August.

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