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Corruption and Military Spending

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  • International Monetary Fund

Abstract

Anecdotal evidence relates corruption with high levels of military spending. This paper tests empirically whether such a relationship exists. The empirical analysis is based on data from four different sources for up to 120 countries in the period 1985–98. The association between military spending and corruption is ascertained by using panel regression techniques. The results suggest that corruption is indeed associated with higher military spending as a share of both GDP and total government spending, as well as with arms procurement in relation to GDP and total government spending. This evidence indicates that defense spending can be considered for constructing governance indicators.

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  • International Monetary Fund, 2000. "Corruption and Military Spending," IMF Working Papers 2000/023, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:2000/023
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    Cited by:

    1. David Croix & Clara Delavallade, 2009. "Growth, public investment and corruption with failing institutions," Economics of Governance, Springer, vol. 10(3), pages 187-219, July.
    2. Simplice Asongu & Mohamed Jellal, 2014. "Foreign aid, investment and fiscal policy behavior: theory and empirical evidence," Working Papers of the African Governance and Development Institute. 14/030, African Governance and Development Institute..
    3. Charles, Lee & David, Ng, 2002. "Corruption and International Valuation: Does Virtue Pay?," MPRA Paper 590, University Library of Munich, Germany, revised Oct 2006.
    4. Asongu, Simplice A & Jellal, Mohamed, 2014. "International aid, corruption and fiscal policy behavior," MPRA Paper 58750, University Library of Munich, Germany.
    5. Hokky Situngkir, 2004. "Money-Scape: A Generic Agent-Based Model of Corruption," Computational Economics 0405008, University Library of Munich, Germany.
    6. Tony Addison & Léonce Ndikumana, 2001. "Overcoming the Fiscal Crisis of the African State," WIDER Working Paper Series DP2001-12, World Institute for Development Economic Research (UNU-WIDER).
    7. Joshua Aizenman & Reuven Glick, 2006. "Military expenditure, threats, and growth," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 15(2), pages 129-155.
    8. David de la Croix & Axel Gosseries, 2007. "Procreation, Migration and Tradable Quotas," Chapters, in: Robert L. Clark & Naohiro Ogawa & Andrew Mason (ed.), Population Aging, Intergenerational Transfers and the Macroeconomy, chapter 9, Edward Elgar Publishing.
    9. Athanasios Lapatinas & Anastasia Litina & Eftichios Sophocles Sartzetakis, 2014. "Is Abatement Effective in the Presence of Corruption? A Theoretical Exploration," DEM Discussion Paper Series 14-29, Department of Economics at the University of Luxembourg.
    10. Shenoy, Ajay, 2008. "The Devil's Calculus: Mathematical Models of Civil War," MPRA Paper 8895, University Library of Munich, Germany.
    11. N. Deyshappriya, 2015. "Do corruption and peace affect economic growth? Evidences from the cross-country analysis," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 17(2), pages 135-147, October.
    12. Asongu, Simplice & Jellal, Mohamed, 2014. "International aid corruption and fiscal behavior policy," MPRA Paper 57192, University Library of Munich, Germany.
    13. Mark Pyman & Regina Wilson & Dominic Scott, 2009. "The Extent Of Single Sourcing In Defence Procurement And Its Relevance As A Corruption Risk: A First Look," Defence and Peace Economics, Taylor & Francis Journals, vol. 20(3), pages 215-232.
    14. Susan Willett, 2009. "Defence Expenditures, Arms Procurement and Corruption in Sub-Saharan Africa," Review of African Political Economy, Taylor & Francis Journals, vol. 36(121), pages 335-351, September.

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