Defense spending and the macroeconomy

The Long-Run Linkages Between Education, Health and Defence Expenditures and Economic Growth: Evidence From Turkey

“…For example, Mueller and Atesoglu (1993), Macnair et al (1995), Tahir (1995), Brumm (1997) and Murdoch et al (1997) provide evidence supporting the Benoit Hypothesis. However, Biswas and Ram (1986), Alexander and Robert (1990), Kinsella (1990), Mintz (1990, 1991), and Payne and Ross (1992) could not find a statistically significant relationship between defence expenditures and economic growth. Smith (1980), Deger and Sen (1983), Deger and Smith (1983), Lim (1983), Cappelen et al (1984), Faini et al (1984), Lipow and Antinori (1995), Blomberg (1996), Vougas (1999), De Rouen (2000), and Abu-Bader and Abu-Qarn (2003) argue that the effect of defence expenditures on economic growth is negative, due to crowding-out effects.…”

Country survey XIX: Mexico

“…The causality between ME and growth is not clear, a change in ME could impact on growth, but a change in growth could also increase or decrease ME. Many authors have studied this problem through statistical causality, finding ambiguous results (Joerding, 1986;Kinsella, 1990;Chowdhury, 1991;Payne and Ross, 1992;Kollias and Makrydakis, 1997;Morales-Ramos, 2001). A major problem in the studies involving the use of ME data is the availability of reliable data.…”

Movilidad Intergeneracional Y Gasto Publico en Argentina

“…Knight, Loayzan y Villanueva (1996) en su estudio para 44 países ofrece amplia evidencia de que el gasto en defensa tiene un impacto positivo en el crecimiento. No obstante, otra corriente de argumentos postula la ausencia de cualquier relación causal entre gasto militar y crecimiento económico (Biswas y Ram, 1986;Payne y Ross, 1992;Kim, 1996;Dakurah, Davis, y Sampath, 2001). En cambio, según otros autores un mayor gasto en defensa disminuye los fondos destinados a partidas sociales como educación, salud y promoción social, retardando el crecimiento económico al reducir la inversión en capital humano.…”