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Defense spending and economic growth in a nonlinear context: The case of France

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  • Julien Malizard

    (GREThA - Groupe de Recherche en Economie Théorique et Appliquée - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique)

Abstract

The aim of this article is to propose further empirical evidence on the defense spending - economic growth relationship in the case of France. Given the complexity of this nexus, we use a nonlinear model, which is original for the case of France. The results are the following : (i) a nonlinear approach is better compared to a linear approach ; (ii) the transition variable is the lagged growth rate ; (iii) the asymmetric behaviour of defense burden is highlighted depending to the growth regime : in the cases of low growth and high growth, the effect is negative but turns to be positive for intermediate growth rates.

Suggested Citation

  • Julien Malizard, 2014. "Defense spending and economic growth in a nonlinear context: The case of France," Post-Print hal-03124855, HAL.
    • Handle: RePEc:hal:journl:hal-03124855
    DOI: 10.3917/reco.pr2.0019
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