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War and regional economic growth: winners and losers

Mohammad Ashraf ()

Applied Economics Letters, 2007, vol. 15, issue 1, 19-22

Abstract: Using an AK-type model this article argues that joining the Armed Forces may have two opposing effects on the growth rates of economically depressed areas depending upon whether the country goes to war or not. On the one hand when individuals from relatively economically depressed areas join the Armed Forces, they gain access to education and build human capital which may translate into economic growth. On the other hand, however, if the country goes to war, these regions may end up losing their labour force, leading to a decline in the growth rate. We also argue that regions providing equipment may experience increased income and employment levels.

Date: 2007
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DOI: 10.1080/13504850600706586

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