Another look at the defense spending and development hypothesis

Frederiksen, Peter C.; Looney, Robert E.

doi:10.1080/07430178508405204

Cited by 21 publications

(4 citation statements)

References 9 publications

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“…Frederiksen & Looney (1985b) assumed an identical model specification and tested for a relationship between defense and growth in the context of their resource constrained/unconstrained hypothesis. Once again, they found that the coefficient for defense spending was positive (and statistically significant) in the richer group but insignificant in the poorer group.…”

Section: )mentioning

confidence: 99%

Defense Expenditures, External Public Debt and Growth in Developing Countries

Looney

Frederiksen

1986

Journal of Peace Research

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This study reexamines the relationship between growth and defense spending in developing countries. It differs from previous studies as it recognizes differences in the borrowing capacity of each country. We hypothesize that a negative relationship will exist between defense and economic growth in countries which are financially resource constrained, and a positive relationship will exist in countries which are relatively resource unconstrained. A factor and discriminate analysis are used to group countries. The variables chosen for the factor analysis depict a country's external debt, structural condition, growth, and balance of payments position. Regression equations were estimated for the total sample and each group, with the growth in Gross Domestic Product as the dependent variable. The results confirm the hypothesized positive relationship between defense and growth in the unconstrained group, but was not confirmed for the constrained group. The results suggest the importance of variables such as foreign exchange, net inflows of capital, external debt, and the growth of the public sector in general, on economic growth.

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Section: )mentioning

confidence: 99%

Defense Expenditures, External Public Debt and Growth in Developing Countries

Looney

Frederiksen

1986

Journal of Peace Research

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“…Again, relatively unconstrained countries experienced positive impacts on growth stemming from defence expenditures, while the countries that were relatively constrained in terms of foreign exchange showed a statistically insignificant but negative impact. Using a later time period, 1965-73, and again grouping developing countries on the basis of their relative savings and investment, 16 we found that the relatively unconstrained countries enjoyed a positive impact from defence expenditures.…”

Section: Literature Survey: the Impact Of Defence Expendituresmentioning

confidence: 91%

The Budgetary Consequences of Middle East Peace: What are the Economic Impacts and Causal Linkages?

Looney¹

2000

Economic and Political Impediments to Middle East Peace

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“…While Benoit tentatively found that defense spending and economic performance were positively correlated, no clear agreement has yet emerged, with some authors suggesting a positive role for defense budgets under certain conditions (Frederiksen & Looney, 1982& Looney, , 1983& Looney, , 1985, and others suggesting an overall negative effect (Ball, 1983). Chan contends (1985, p. 434) that one of the main problems to date is the little effort devoted to identifying the direction of causality, i.e.…”

Section: Review Of the Economic Impact Literaturementioning

confidence: 99%

Internal and External Factors in Effecting Third World Military Expenditures

Looney

1989

Journal of Peace Research

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Recent research on the determinants of Third World military expenditures has indicated that economic variables show great promise in providing a framework as to the underlying causes of Third World defense allocation decisions. Building on this research, we test the hypotheses that the level of military expenditures in developing countries is determined in large part by economic constraints relative to external (threat) factors. In general this hypothesis is borne out with the important qualification that countries without an arms industry appear relatively more affected by external factors than countries with an arms industry. The main implication of the analysis is that a reduction in Third World arms production would most likely result in lower overall levels of military expenditures in these countries.

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Another look at the defense spending and development hypothesis

Cited by 21 publications

References 9 publications

Defense Expenditures, External Public Debt and Growth in Developing Countries

Defense Expenditures, External Public Debt and Growth in Developing Countries

The Budgetary Consequences of Middle East Peace: What are the Economic Impacts and Causal Linkages?

Internal and External Factors in Effecting Third World Military Expenditures

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