Do U.S. military bases impair the economic growth of the host countries?

Zhangping Wang

Economic Analysis and Policy, 2023, vol. 80, issue C, 1655-1665

Abstract: The construction of overseas military bases requires significant investment from the defence budget, but the literature is still divided on whether this has a negative impact on the host nation’s economy. This study empirically examines these issues using data from the most recent US defence budget, revenue statistics from military contractors, and financial information from US military bases in Japan. The results of the study suggest that the construction of overseas bases only harms the American economy if they are acquired through military occupation. On the other hand, building overseas bases that are secured through an alliance will support American economic growth.

Keywords: Defence budget; Military alliance; Military base overseas; Military revenue (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:80:y:2023:i:c:p:1655-1665

DOI: 10.1016/j.eap.2023.09.014

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