Military Spending and Growth: The Role of Institutions. Issue 3 (3rd May 2016)

• Record Type: Journal Article
• Authors: Compton, Ryan A.; Paterson, Bryan
• Is Part Of: Defence and peace economics. Volume 27:Issue 3(2016)
• Page Start: 301
• Page End: 322
• Publication Date: 2016-05-03
• Subjects: Military expenditure -- Growth -- Institutions -- Defence economics; E6 -- H5 -- O43; Military readiness -- Economic aspects -- Periodicals; Disarmament -- Economic aspects -- Periodicals; 338.47355
• DOI: 10.1080/10242694.2015.1060022
• Languages: English
• ISSNs: 1024-2694

Abstract

Abstract : Recent literature on whether military spending affects economic growth argues that the relationship may be a conditional one. We add to this literature by considering the role that 'good institutions' play in the effect of military spending on growth. Using data from a sample of over 100 countries from 1988 to 2010, our analysis suggests that the effect of military spending on growth is generally negative or zero at best, and this effect is mitigated in the presence of good economic and political institutions.