Trade-offs Between Defence and Education/Health Expenditures in Developing Countries

Geoffrey Harris, Mark Kelly and Pranowo
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Geoffrey Harris: Department of Economics, University of New England
Mark Kelly: Department of Economics, University of New England
Pranowo: Department of Economics, University of New England

Journal of Peace Research, 1988, vol. 25, issue 2, 165-177

Abstract: It is commonly believed that defence expenditures have a particular ability to compete government financial resources away from other activities, especially education and health. This article uses a number of methods to test for the existence and strength of such trade-offs in a large number of LDCs. Cross- sectional analysis of government expenditures found that few countries which were low defence spenders were high spenders on education/health (and vice versa). Defence expenditures were no less vulnerable to overall budget cuts, nor more likely to gain from budget increases than education and health. Finally, a longitudinal regression analysis for twelve Asian countries revealed little evidence of trade-offs We discuss some of the reasons why our analysis may not support the conventional view on trade-offs and, finally, make a number of suggestions concerning future research on this topic.

Date: 1988
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Persistent link: https://EconPapers.repec.org/RePEc:sae:joupea:v:25:y:1988:i:2:p:165-177

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