Does Military Spending Spur Economic Growth? An Empirical Approach

Bran Alexandra-Carmen ()
Additional contact information
Bran Alexandra-Carmen: Bucharest University of Economic Studies, Bucharest, Romania

Proceedings of the International Conference on Business Excellence, 2023, vol. 17, issue 1, 178-187

Abstract: This study examines the complexities involved in calculating the impact of military spending on economic growth, as well as the reasons for the lack of consensus in the academic literature. It explores econometric approaches for panels and provides a brief overview of economic theory, highlighting the difficult identification challenges involved in identifying the connection between military expenditures and output. Using the enlarged SIPRI military spending data, a relatively large and balanced panel of nations for the period 1960-2014 is constructed. Rather than focusing on the direct relationship between military spending and economic growth, this paper emphasizes the investment channel. It presents estimates of various models analyzing the interaction between the three variables and concludes that the data do not indicate strong relationships between military expenditure and investment or growth. Given the identified theoretical and economic issues, this is not unexpected.

Keywords: military spending; economic growth; investment (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.2478/picbe-2023-0020 (text/html)

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:vrs:poicbe:v:17:y:2023:i:1:p:178-187:n:23

DOI: 10.2478/picbe-2023-0020

Access Statistics for this article

Proceedings of the International Conference on Business Excellence is currently edited by Alina Mihaela Dima

More articles in Proceedings of the International Conference on Business Excellence from Sciendo
Bibliographic data for series maintained by Peter Golla ().