Guns versus butter for economic growth
A disaggregated analysis of the impact of military expenditure
Bibliographic Data
| ID | 17832127 |
|---|---|
| Authors | Antonis Tsitouras (0000-0001-5917-3799, University of Western Macedonia, corresponding author), Nicholas Tsounis (0000-0002-5763-3947, Hellenic Open University) |
| Year | 2026 |
| Volume | 13 |
| Issue | 1 |
| Publication date | 2026-02-13 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Humanities and Social Sciences Communications (JOURNAL) |
| Journal identifiers | ISSN: 2662-9992 • E-ISSN: 2662-9992 |
| Publisher | Palgrave Macmillan (PUBLISHER • GB) |
| DOI | 10.1057/s41599-025-05580-7 |
| OpenAlex | W7128772380 |
| Language | EN |
| References cited | 81 |
Few empirical studies have applied a disaggregated analysis of the impact of military expenditure on economic growth. The novelty of this study lies in its use of various econometric and statistical methods to assess the impact of disaggregated defence spending on economic growth in a developed economy like Greece, which has consistently spent over 2% of its GDP on military expenditures. This study employs the latest data from 1980 to 2023 to improve precision and relevance in the analysis. The findings possess substantial practical and theoretical ramifications. First, military expenditure stimulates economic growth in the short run but impedes it in the long run. Second, our research indicates that military personnel spending exerts the most pronounced and contradictory impact on economic growth relative to other categories of the military budget. Finally, the Granger causality results confirm that a robust feedback relationship exists between economic growth and military spending. In light of these results, it is essential for a country to follow a rational spending approach for national security and to implement a balanced spending strategy that promote the production of domestic armaments and technology, enhance human resources, and improve the labour market after military service, thus minimising inelastic expenditures such as wages and pensions
Econometric model · Economic forecasting · Economic impact analysis · Empirical research · Granger causality · Novelty · Defense, Military, and Policy Studies · Economic Growth and Productivity · Fiscal Policy and Economic Growth
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Cointegration Vector Estimation by Panel Dols and Long‐run Money Demand
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Efficient Tests for an Autoregressive Unit Root
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Maximum Likelihood Estimation and Inference on Cointegration — With Applications to the Demand for Money
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Guns versus Butter
The Continent or the “Grand Large”? Strategic Culture and Operational Burden-Sharing in Nato
Growth and Defense in Developing Countries
Defense Spending, Economic Structure, and Growth
Disaggregated defense spending
Military Expenditure and Economic Growth in Greece, 1960-90
| Citation velocity | historical |
|---|---|
| Highly cited | No |