EconPapers    
Economics at your fingertips  
 

Does development aid increase military expenditure?

Sarah Langlotz and Niklas Potrafke

Munich Reprints in Economics from University of Munich, Department of Economics

Abstract: Using a new instrumental variable strategy, we examine whether bilateral development aid increases military expenditure in recipient countries. The instrument is the interaction of donor government fractionalization and the probability of receiving aid. The dataset includes new data on military expenditure for 124 recipient countries over the 1975-2012 period. When accounting for outliers, our results do not suggest that development aid affects military expenditure in the full sample. However, the effect of aid on military expenditure varies across characteristics of recipient and donor countries, even after excluding outliers. First, aid increases military expenditure in countries that depend on aid and are prone to conflicts. Second, aid provided by coordinated market economies increases military expenditure.

Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (10)

Published in Journal of Comparative Economics 3 47(2019): pp. 735-757

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Does development aid increase military expenditure? (2019) Downloads
Working Paper: Does Development Aid Increase Military Expenditure? (2019) Downloads
Working Paper: Does development aid increase military expenditure? (2016) Downloads
Working Paper: Does Development Aid Increase Military Expenditure? (2016) Downloads
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:lmu:muenar:78251

Access Statistics for this paper

More papers in Munich Reprints in Economics from University of Munich, Department of Economics Ludwigstr. 28, 80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Tamilla Benkelberg ().

 
Page updated 2025-03-31
Handle: RePEc:lmu:muenar:78251