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    Military expenditure, investment and growth

    Smith, Ron P. and Dunne, J.P. (2019) Military expenditure, investment and growth. Defence and Peace Economics , ISSN 1024-2694. (In Press)

    MEI 260419.pdf - Author's Accepted Manuscript

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    This paper considers the issues involved in estimating the effect of military expenditure on growth and the reasons for the lack of consensus in the literature. It briefly reviews the economic theory, emphasising the difficult identification issues involved in determining the interaction between military expenditure and output and discusses econometric methods for panels. It then takes advantage of the extended SIPRI military spending to construct a relatively large balanced panel of countries for the period 1960-2014. Rather than the usual focus on the direct relation between military spending on growth, it focusses upon the investment channel. It provides estimates of various models examining the interaction between the three variables and finds that the data do not suggest any strong relations between military expenditure and either investment or growth. This is not unexpected given the theoretical and econometric problems identified.


    Item Type: Article
    Additional Information: This is an Accepted Manuscript of an article published by Taylor & Francis, available online at the link above.
    Keyword(s) / Subject(s): Military spending, investment, growth, panel data.
    School: School of Business, Economics & Informatics > Economics, Mathematics and Statistics
    Research Centres and Institutes: Innovation Management Research, Birkbeck Centre for
    Depositing User: Ron Smith
    Date Deposited: 10 Jul 2019 17:56
    Last Modified: 28 Jun 2021 16:17


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