Defense spending and economic growth in a nonlinear context: The case of France

Julien Malizard

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Abstract: The aim of this article is to propose further empirical evidence on the defense spending - economic growth relationship in the case of France. Given the complexity of this nexus, we use a nonlinear model, which is original for the case of France. The results are the following : (i) a nonlinear approach is better compared to a linear approach ; (ii) the transition variable is the lagged growth rate ; (iii) the asymmetric behaviour of defense burden is highlighted depending to the growth regime : in the cases of low growth and high growth, the effect is negative but turns to be positive for intermediate growth rates.

Date: 2014
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Published in Revue Economique, inPress, 65 (3), pp.601-618. ⟨10.3917/reco.pr2.0019⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03124855

DOI: 10.3917/reco.pr2.0019

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