Country survey XIX: Mexico

Eduardo Morales-Ramos

Defence and Peace Economics, 2004, vol. 15, issue 1, 83-99

Abstract: This paper presents a survey of Mexican military expenditure (ME), which assesses the role of ME in Mexican economic growth. After presenting a description of the armed forces, Mexican military policy and the Mexico-US military relationship, this paper outlines a demand-supply model to analyse the effects of ME on growth. The empirical results suggest interesting insights on the ME-growth relationship for the Mexican case. These results present evidence against the crowding-out hypothesis of ME on growth. For the Mexican case, ME produces a positive effect on growth.

Date: 2004
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DOI: 10.1080/1024269042000164513

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