ON THE RELATIONSHIP BETWEEN MILITARY EXPENDITURE, THREAT, AND ECONOMIC GROWTH: A NONLINEAR APPROACH
The main objective of the paper is to decipher the military expenditure-economic growth relationship, taking the level of economic development (income) into consideration. Our findings suggest the following: (i) military expenditure has a significantly negative relationship to economic growth for th...
Saved in:
Published in | Defence and peace economics Vol. 22; no. 4; pp. 449 - 457 |
---|---|
Main Authors | , , , |
Format | Journal Article |
Language | English |
Published |
Switzerland
Routledge
01.08.2011
Taylor and Francis Journals Taylor & Francis LLC |
Series | Defence and Peace Economics |
Subjects | |
Online Access | Get full text |
Cover
Loading…
Summary: | The main objective of the paper is to decipher the military expenditure-economic growth relationship, taking the level of economic development (income) into consideration. Our findings suggest the following: (i) military expenditure has a significantly negative relationship to economic growth for the 23 countries with initial incomes (threshold variable) less than or equal to $475.93; (ii) when the threat level is heightened, economic growth (23 countries) is expected to decrease. However, military expenditure in the presence of sufficiently large threats increases growth; (iii) for the remaining 69 countries whose initial incomes (real GDP per capita in 1992 price) exceed $475.93, no significant relationship exists whether the threat variable is taken into consideration or not. |
---|---|
Bibliography: | ObjectType-Article-2 SourceType-Scholarly Journals-1 ObjectType-Feature-1 content type line 23 |
ISSN: | 1024-2694 1476-8267 |
DOI: | 10.1080/10242694.2010.497723 |