IDEAS home Printed from https://ideas.repec.org/p/imf/imfwpa/93-86.html
   My bibliography  Save this paper

The Impact of Worldwide Military Spending Cutson Developing Countries

Author

Listed:
  • Steven A. Symansky
  • Tamim Bayoumi
  • Daniel P. Hewitt

Abstract

This paper investigates the economic impact of a coordinated reduction in military expenditures of 20 percent using a specially modified version of the MULTIMOD world economic model. Simulation results indicate that in developing countries the present value of consumption increases by 46 percent of 1992 GDP, compared to military expenditures cuts, in present value terms, of 33 percent of 1992 GDP. The gains reflect both the release of domestic resources and a positive international economic externality due to enhanced trade and lower world interest rates. Accordingly, the net debtor developing country gains exceed those of industrial countries. Examination of individual developing country economies confirms the significance of the external trade effect on the pattern and level of gains.

Suggested Citation

  • Steven A. Symansky & Tamim Bayoumi & Daniel P. Hewitt, 1993. "The Impact of Worldwide Military Spending Cutson Developing Countries," IMF Working Papers 93/86, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:93/86
    as

    Download full text from publisher

    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=1141
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Ronnie Lowenstein & Richard Peach, 1992. "The impact of the current defense build-down," Quarterly Review, Federal Reserve Bank of New York, issue Aut, pages 59-68.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rémy Herrera, 2005. "Un renouveau de l'économie du développement ?," Cahiers de la Maison des Sciences Economiques r05075, Université Panthéon-Sorbonne (Paris 1).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:93/86. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jim Beardow) or (Hassan Zaidi). General contact details of provider: http://edirc.repec.org/data/imfffus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.