Defence Spending, Institutional Environment and Economic Growth: Case of NATO
Natalia Utrero-González (),
Jana Hromcová () and
Francisco Callado-Muñoz ()
Working Papers from Department of Applied Economics at Universitat Autonoma of Barcelona
This paper analyses the impact of participating in a military alliance on the nexus between defence spending and economic growth. In particular, we study how the process of gradual association to a military organization influences the defence spending of new-comers, and consequently their economic growth. Conclusions from the theoretical model are tested empirically for countries in the North Atlantic Treaty Organization. Results show that the prospect of intensified military alliance partnership and membership has a positive effect on economic growth. In addition, increased security and stability gained by closer military cooperation reinforces the positive link with economic growth. Empirical evidence supports theoretical priors.
Keywords: military alliance; defence spending; public spending; growth. (search for similar items in EconPapers)
JEL-codes: D74 H5 O4 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to www.ecap.uab.es:443 (http://www.ecap.uab.es/RePEc/doc/wpdea1704.pdf [301 Moved Permanently]--> https://www.ecap.uab.es/RePEc/doc/wpdea1704.pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:uab:wprdea:wpdea1704
Access Statistics for this paper
More papers in Working Papers from Department of Applied Economics at Universitat Autonoma of Barcelona Contact information at EDIRC.
Bibliographic data for series maintained by Miquel Colobran ().