Military expenditure and economic growth: A survey

Dunne, J. Paul; Tian, Nan

doi:10.15355/epsj.8.1.5

Cited by 104 publications

(52 citation statements)

References 19 publications

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“…Dunne and Tian (2013) in their work, attempted to summarize 170 studies and found that more recent studies provide stronger evidence of a negative effect of military expenditure on economic growth. In their study, Shahbaz, Afza and Shabbir (2013) applied the keynessian model in a study using Pakistan as its case where autoregressive distributive lag bounds testing approach to cointegration in their bid to examine the relationship between defense spending and economic growth.…”

Section: Review Of Relevant Literaturementioning

confidence: 99%

Military Budget, War Against Boko Haram Insurgency, and Its Impact on Nigerian Politics and Economy

Duruji

Idowu

Dibia³

et al. 2018

Handbook of Research on Military Expenditure on Economic and Political Resources

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Section: Review Of Relevant Literaturementioning

confidence: 99%

Military Budget, War Against Boko Haram Insurgency, and Its Impact on Nigerian Politics and Economy

Duruji

Idowu

Dibia³

et al. 2018

Handbook of Research on Military Expenditure on Economic and Political Resources

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“…Not entirely conclusive: For a recent survey, see Dunne and Tian (2013). Numerous channels: See Dunne, Smith, and Willenbockel (2005) for a general discussion.…”

Section: On Russia: In a Recent Interview Nato Secretary Generalmentioning

confidence: 99%

Military expenditure and economic growth in the European Union: Evidence from SIPRI’s extended dataset

Malizard¹

2016

EPSJ

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The aim of this article is to shed light on the fiscal consequences of economic growth in the EU15 countries by disentangling military and civilian government expenditure. T he economic crisis that began in the late 2000s has spurred economists to (re)evaluate the macroeconomic consequences of public sector spending. No consensus has emerged which makes it difficult to address policy options. For European countries, especially, estimating the influence of public expenditure is a major issue as many of them have reached public debt limits stipulated by Maastricht criterion. The subsequent fiscal consolidation then raised questions regarding the consequence of debt limits on current economic performance. The aim of this article is to provide empirical evidence of the long-run effect of public expenditure in the EU15 countries by comparing military and nonmilitary, civlian public expenditure. 1Military expenditure lies at the intersection of security needs and budgetary constraints: A rise in perceived threats should lead to a rise in military expenditure whereas bad economic conditions could have an adverse effect on military outlays. Recent trends in the EU15 show that following the fiscal consolidation policy, military expenditure fell by an average of 12.5 percent between 2010 and 2014, especially so in countries most severely affected by the economic crisis, i.e., Greece, Italy, Portugal, and Spain. (Among the EU15, only Sweden showed a rise in military expenditure for the 2010-2014 period.) At the same time, the EU15 are facing increased threats: For instance, the attitude of Russia appears somewhat aggressive and generates uncertainties regarding Crimea, terrorists' attacks have taken place in Paris and elsewhere in Europe, and a number of European countries are involved in the international coalition against ISIS. The nature of many of these kinds of threats is more diffuse than before so that security issues raise challenges not yet fully taken into account by European defense strategy.

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“…The survey by Dunne and Tian (2013) suggests that studies using post-cold war data tend to find significant negative effects. Empirical evidence for the focal countries in this article, with the exception of Greece is limited.…”

Section: Brief Literature Reviewmentioning

confidence: 99%

Greece, Portugal, Spain: New evidence on the economic effects of military expenditure using the new SIPRI data

Nikolaidou

2016

EPSJ

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This article first compares old with newly updated and extended SIPRI military expenditure data for Greece, Portugal, and Spain. Using the new data to confirm or reject earlier findings, it then replicates a Solow growth model application employed in a 2012 study by Dunne and Nikolaidou. In addition, the article provides new evidence on the military expenditure-economic growth nexus for these three countries using the extended data that now cover the post-global financial crisis and European debt crisis years. The use of the new SIPRI data does not lead to rejection of the earlier findings for Greece and Portugal but does reject the formerly negative and statistically significant effect of military burden on growth for the case of Spain.

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Military expenditure and economic growth: A survey

Cited by 104 publications

References 19 publications

Military Budget, War Against Boko Haram Insurgency, and Its Impact on Nigerian Politics and Economy

Military Budget, War Against Boko Haram Insurgency, and Its Impact on Nigerian Politics and Economy

Military expenditure and economic growth in the European Union: Evidence from SIPRI’s extended dataset

Greece, Portugal, Spain: New evidence on the economic effects of military expenditure using the new SIPRI data

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