 Defence Spending and Economic Growth in the EU15John Dunne and Eftychia Nikolaidou No 1102, Working Papers from Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol Abstract: Over the last 30 years there has been an impressive amount of empirical work on the defence-growth nexus, using different methodologies, models and econometric techniques and focusing on individual case studies, cross-country studies or panel data studies. Despite the number and the variety of studies, the evidence on the defence-growth relationship is still far from conclusive. Rather surprisingly, very limited work has been published in the relevant literature for the European Union despite the continuous discussions for a Common European Defence Policy that would require an assessment of the economic effects of defence in this region. To fill in the gap in the literature, this paper employs an augmented Solow-Swan model and estimates it both with panel and time series methods to provide empirical evidence on the economic effects of defence spending in the EU15 over the period 1961-2007. Overall, evidence derived from both panel and time series methods is consistent and suggests that military burden does not promote economic growth in this region. Keywords: Defence Spending; Economic Growth; Panel data; time series; EU15 (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:uwe:wpaper:1102 Access Statistics for this paper More papers in Working Papers from Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol Contact information at EDIRC. |
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