Military Expenditure, Economic Growth and Heterogeneity

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Show simple item record Dunne, John Paul Tian, Nan 2013-08-01T13:23:28Z 2013-08-01T13:23:28Z 2013-06
dc.identifier.isbn 978-1-920517-36-6
dc.description.abstract This paper examines the impact of military expenditure on economic growth on a large balanced panel, using an exogenous growth model and dynamic panel data methods for 106 countries over the period 1988-2010. A major focus of the paper is to consider the possibility group heterogeneity and non-linearity. Having estimated the model for all of the countries in the panel and finding that military burden has a negative effect on growth in the short and long run, the panel is broken down into various groupings based upon a range of potentially relevant factors and the robustness of the results is evaluated. The factors considered are different levels of income, conflict experience, natural resources abundance, openness and aid. The estimates for the different groups are remarkably consistent with those for the whole panel, providing strong support for the argument that military spending has adverse effects on growth. There are, however, some intriguing results that suggest that for certain types of countries military spending has no significant effect on growth. en_US
dc.language.iso en en_US
dc.relation.ispartofseries Working Paper;95
dc.subject Military expenditure en_US
dc.subject Economic growth en_US
dc.subject Conflict en_US
dc.subject Development en_US
dc.title Military Expenditure, Economic Growth and Heterogeneity en_US
dc.type Working Paper en_US

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