The Effect of Military Expenditure on Profit Rates: Evidence from Major Countries
Adem Elveren () and
Sara Hsu ()
Additional contact information
Sara Hsu: Department of Economics, State University of New York-New Paltz
World Journal of Applied Economics, 2018, vol. 4, issue 2, 75-94
This article provides evidence of the effect of military expenditures on the rate of profits by focusing on 32 major countries for the period of 1963-2008 by using data from the Extended Penn World Tables, the University of Texas Inequality Project Estimated Household Income Inequality, the World Development Indicator, and the Stockholm International Peace Research Institute. The article employs a Generalized Method of Moment model within a Marxist framework. Findings show that military expenditures have positive effect on the rate of profits. It is also showed that increasing income inequality increases the rate of profits. Finally, the findings suggest that while military expenditures have a positive effect on the profit rates in the case of both armsexporting countries and net-arms exporters, the relationship is not that significant in the case of arms-importing countries.
Keywords: Military expenditure; Profit rate; Income inequality; Panel data; Marxist economics (search for similar items in EconPapers)
JEL-codes: C33 E11 H50 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ana:journl:v:4:y:2018:i:2:p:75-94
Access Statistics for this article
World Journal of Applied Economics is currently edited by Hasan Dudu
More articles in World Journal of Applied Economics from WERI-World Economic Research Institute Contact information at EDIRC.
Bibliographic data for series maintained by Unal Tongur ().