IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/17758.html
   My bibliography  Save this paper

The Vicious Cycle of the Foreign Military Debt

Author

Listed:
  • Stavrinos, Vasilios G.
  • Zombanakis, George A.

Abstract

This paper aims at estimating first the effects of defense spending on the main determinants of growth, and second the extent to and the channels through which the military debt of Greece influences the overall debt burden of the country, and consequently the critical determinants of economic growth and development. Increased imports of sophisticated weapons and military equipment can be financed at the cost of investment (guns v. ploughshares), or/and at the cost of human capital formation (guns v. butter and chalk), or at the cost of increasing the foreign debt of the country. It is this last case which is investigated in this paper. Our empirical results indicate that whatever the necessity and the benefits of the security aspect of defense, its economic costs are quite substantial. The military as a claimant of resources has a negative and non trivial effect on physical capital accumulation, and human capital formation. Moreover, financing increased military imports through borrowing from abroad has a negative and significant effect on the determinants of growth and development.

Suggested Citation

  • Stavrinos, Vasilios G. & Zombanakis, George A., 1998. "The Vicious Cycle of the Foreign Military Debt," MPRA Paper 17758, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:17758
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/17758/1/MPRA_paper_17758.pdf
    File Function: original version
    Download Restriction: no

    References listed on IDEAS

    as
    1. Gleditsch & Fetter Nils & Cappelen Âdne & Bjerkholt Olav & Maneval Helmut, 1995. "The Wages of Peace," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 214(6), pages 757-758, December.
    2. Ã…dne Cappelen & Nils Petter Gleditsch & Olav Bjerkholt, 1984. "Military Spending and Economic Growth in the OECD Countries," Journal of Peace Research, Peace Research Institute Oslo, vol. 21(4), pages 361-373, December.
    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. Andreou, Andreas S. & Zombanakis, George A., 2003. "Intelligent information systems for defence problems," MPRA Paper 38637, University Library of Munich, Germany.
    2. Andreou Andreas S. & Zombanakis George A. & Migiakis Petros M., 2013. "On Defence Expenditure Reduction: Balancing Between Austerity and Security in Greece," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 19(3), pages 437-458, December.
    3. ANDREOU, ANDREAS & PARSOPOULOS, KONSTANTINE & VRACHATIS, MICHAEL & Zombanakis, George A., 2003. "Optimal Versus Required Defence Spending," MPRA Paper 78663, University Library of Munich, Germany, revised 14 Jul 2003.
    4. ANDREOU, A. S. & PARSOPOULOS, K. E. & VRACHATIS, M. N. & Zombanakis, George A., 2002. "Searching for the Optimal Defence Expenditure: An Answer in the Context of the Greek – Turkish Arms Race," MPRA Paper 51580, University Library of Munich, Germany, revised 15 Aug 2002.
    5. Andreou, Andreas S. & Zombanakis, George A., 2000. "Financial Versus Human Resources in the Greek-Turkish Arms Race: A Forecasting Investigation Using Artificial Neural Networks," MPRA Paper 13892, University Library of Munich, Germany.
    6. repec:bpj:pepspp:v:23:y:2017:i:3:p:15:n:1 is not listed on IDEAS
    7. A. S. Andreou & K. E. Parsopoulos & M. N. Vrahatis & G. A. Zombanakis, 2002. "Optimal versus required defence expenditure: The case of the Greek-Turkish arms race," Defence and Peace Economics, Taylor & Francis Journals, vol. 13(4), pages 329-347.
    8. Andreou, Andreas & Zombanakis, George, 2003. "Measuring Relative Military Security," MPRA Paper 78660, University Library of Munich, Germany, revised 14 Jul 2003.
    9. Andreou, Andreas S. & Zombanakis, George, 2003. "The Greek-Turkish Arms Race Using Artificial Neural Networks," MPRA Paper 78576, University Library of Munich, Germany, revised 14 Jul 2003.
    10. Andreou Andreas S & Zombanakis George A, 2006. "The Arms Race between Greece and Turkey: Commenting on a Major Unresolved Issue," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 12(1), pages 1-18, September.
    11. A. S. Andreou & K. E. Parsopoulos & M. N. Vrahatis & G. A. Zombanakis, 2004. "An alliance between Cyprus and Greece: assessing its partners' relative security contribution," Defence and Peace Economics, Taylor & Francis Journals, vol. 15(5), pages 481-495.
    12. Andreou, Andreas S. & Zombanakis, George A., 2001. "A Neural Network Measurement of Relative Military Security: The Case of Greece and Cyprus," MPRA Paper 14539, University Library of Munich, Germany, revised 2001.

    More about this item

    Keywords

    Key Words: Defense Burden; Foreign Military Debt; Growth Rate; Investment; Education.;

    JEL classification:

    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War

    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:pra:mprapa:17758. 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: (Joachim Winter). General contact details of provider: http://edirc.repec.org/data/vfmunde.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.