Economic Growth and Defense Spending in Developing Countries

Newman Kwadwo Kusi

84 citations0/0 files storedJournal of Conflict Resolution

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Defense, Military, and Policy Studies Military and Defense Studies Fiscal Policy and Economic Growth

Abstract

This article investigates the causal relationship between economic growth and defense spending in 77 developing countries. The study employs Granger-causality tests using annual time series data for each of the 77 countries to analyse the presence and direction of causality between the two variables. The results indicate that the relationship between economic growth and defense spending cannot be generalized across countries. It may depend, among other things on the sample period of study and the level of socioeconomic development of the country concerned.

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References

1969Investigating Causal Relations by Econometric Models and Cross-spectral Methods 2008Investigating Causal Relations by Econometric Models and Cross-Spectral Methods 1986Military Expenditures and Economic Growth in Less Developed Countries: An Augmented Model and Further Evidence 1991A Causal Analysis of Defense Spending and Economic Growth 1986Economic growth and defense spending 1986The Causal Relation between Federal Expenditures and Receipts

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