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...

Full description

Saved in:
Bibliographic Details
Published inDefence and peace economics Vol. 22; no. 4; pp. 449 - 457
Main Authors Yang, Albert J.F., Trumbull, William N., Yang, Chin Wei, Huang, Bwo-Nung
Format Journal Article
LanguageEnglish
Published Switzerland Routledge 01.08.2011
Taylor and Francis Journals
Taylor & Francis LLC
SeriesDefence and Peace Economics
Subjects
Correlation analysis
Defense spending
Economic development
Economic growth
Expenditures
Gross domestic product
Manycountries
Measurement
Military expenditure
Security
Studies
Threat
Threats
Threshold
Online AccessGet full text

Cover

More Information
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