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Country Survey: Military Expenditure And Its Impact On Productivity In Italy, 1988--2008

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  • Raul Caruso
  • Addesa Francesco

Abstract

This paper analyses the military expenditures in Italy over the period 1988--2008. The estimation of a conventional model of military expenditure shows that the choices of military expenditure by Italian governments are influenced by US and, to a lesser extent, the other NATO countries' defence spending. In particular, the negative association between the US and NATO average military expenditure on the Italian one suggests a free-rider behaviour of Italy. Eventually, we focus on the relationship between productivity and military expenditure. The results suggest that there is a negative association between productivity and military expenditures in the long run. Namely, if military expenditures were substituted by civilian expenditures, the Italian overall productivity would be expected to improve.

Suggested Citation

  • Raul Caruso & Addesa Francesco, 2012. "Country Survey: Military Expenditure And Its Impact On Productivity In Italy, 1988--2008," Defence and Peace Economics, Taylor & Francis Journals, vol. 23(5), pages 471-484, October.
    • Handle: RePEc:taf:defpea:v:23:y:2012:i:5:p:471-484
    DOI: 10.1080/10242694.2011.608964
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    1. Ben D. MacArthur & Richard O. C. Oreffo, 2005. "Bridging the gap," Nature, Nature, vol. 433(7021), pages 19-19, January.
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    Cited by:

    1. Adelaide Baronchelli & Raul Caruso, 2023. "Italian small arms exports: between incentives and international sanctions," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 40(3), pages 1075-1106, October.
    2. Caruso Raul & Antonella Biscione, 2022. "Militarization and Income Inequality in European Countries (2000–2017)," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 28(3), pages 267-285, September.
    3. Raul Caruso, 2015. "Beyond deterrence and decline. Towards a general understanding of peace economics," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 123(1), pages 57-74.
    4. Johannes Blum, 2021. "Democracy’s third wave and national defense spending," Public Choice, Springer, vol. 189(1), pages 183-212, October.
    5. Sakiru Solarin, 2016. "Sources of labour productivity: a panel investigation of the role of military expenditure," Quality & Quantity: International Journal of Methodology, Springer, vol. 50(2), pages 849-865, March.
    6. Johannes Blum, 2020. "Democracy’s Third Wave and National Defense Spending," ifo Working Paper Series 339, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    7. Klomp, Jeroen, 2023. "Political budget cycles in military expenditures: A meta-analysis," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 1083-1102.
    8. Bragoudakis Zacharias G. & Zombanakis George A., 2017. "Earning a Peace Dividend in a Crisis Environment: The Greek Case," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 23(3), pages 1-15, August.
    9. Ming Zhong & Tsangyao Chang & D. P. Tang & Yemane Wolde-Rufael, 2015. "The causal nexus between military spending and unemployment in the G7: a bootstrap panel causality test," Defence and Peace Economics, Taylor & Francis Journals, vol. 26(6), pages 609-622, December.
    10. Ali Hamid E., 2011. "Military Expenditures and Human Development: Guns and Butter Arguments Revisited: A Case Study from Egypt," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 17(1), pages 1-21, September.

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