Defense Expenditures, Economic Growth, and The “Peace Dividend

A Longitudinal Analysis of 103 Countries

Datos Bibliográficos

ID6283322
AutoresAlex Mintz (Texas A&M University), Randolph T Stevenson (0000-0003-2565-1355, University of Rochester)
Año1995
Volumen39
Número2
Páginas283-305
Fecha de publicación1995-06-01
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaJournal of Conflict Resolution (JOURNAL)
Identificadores de la revistaISSN: 0022-0027 • E-ISSN: 1552-8766
EditorialSAGE Publications Inc (PUBLISHER)
DOI10.1177/0022002795039002004
OpenAlexW1975481215
IdiomaEN
Citas recibidas30
Referencias citadas32

Despite the proliferation of studies on the impact of military spending on economic growth, it is still not known whether defense spending hinders or promotes growth. Most analysts attribute the lack of consistent/robust findings to three problems: the lack of a sound theory of defense-growth trade-offs, an inadequate research design, and a failure to account for the externality effects that defense spending might have on other parts of the economy. In this study, the authors try to remedy these problems by (1) relying on a model of the defense-growth trade-off that is grounded in the neoclassic theory of growth, (2) estimating this model using time-series data on 103 countries, and (3) explicitly accounting for the externality effects of defense spending by the use of a multisectorial model. The results show that, regardless of the specification of the models, and contrary to most cross-national studies, military expenditures have a significant positive effect on growth in only about 10% of the cases

Classical economics · Dividend · Economics · Externality · Growth model · Growth theory · Macroeconomics · Microeconomics · Public economics · Defense, Military, and Policy Studies · Finance · Fiscal Policy and Economic Growth