The impact of defense and non-defense public spending on growth in Asia and Latin America

James Murdoch (), Chung-Ron Pi and Todd Sandler

Defence and Peace Economics, 1997, vol. 8, issue 2, 205-224

Abstract: For a three-sector Feder-Ram framework, we present time-series, cross-sectional estimates for two cohorts, consisting of Asian and Latin American countries. The estimates indicate that private investment, and defense and non-defense public spending are growth promoting for alternative error components representations. For the best error components representation, greater growth enhancement is associated with the two forms of public spending in Asia than in Latin America, while the opposite comparison characterizes private investment. Although defense is growth promoting, an opportunity cost exists insofar as non-defense spending, financed by defense spending, appears to give a small net boost to growth in Latin America.

Keywords: Feder-Ram model; Error components models; Growth and defense spending; Public spending; Peace dividend; Asia; Latin America; Panel data (search for similar items in EconPapers)
Date: 1997
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (29)

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/10430719708404876 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:defpea:v:8:y:1997:i:2:p:205-224

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/GDPE20

DOI: 10.1080/10430719708404876

Access Statistics for this article

Defence and Peace Economics is currently edited by Professor Keith Hartley

More articles in Defence and Peace Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().