Intelligence and defense spending: a cross-country evidence

Raufhon Salahodjaev

MPRA Paper from University Library of Munich, Germany

Abstract: This paper investigates the association between intelligence and military expenditure, across 159 nations during the 1990-2013 period. The econometric results we provide are surprising. On one hand, we fail to confirm that intelligence has monotonic effect on military spending. However, the results also suggest a novel type of intelligence-military spending nexus. In particular, the regression estimates show that there is inverted U-shaped relationship between IQ and military expenditure. From a policy perspective these findings suggest that cognitive development that increases military expenditures is sustainable so long as defense sector has positive spillovers on economic and social well-being.

Keywords: military; expenditure; intelligence; cross-country; IQ (search for similar items in EconPapers)
JEL-codes: F52 (search for similar items in EconPapers)
Date: 2016-03-01
New Economics Papers: this item is included in nep-neu
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:70252

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