МОДЕЛЬ ВЗАЄМОЗВ'ЯЗКУ ОБОРОННИХ ВИТРАТ ТА ЕКОНОМІЧНОГО ЗРОСТАННЯ

Abstract

Defense spending is one of the most important functions of national security and defense. Defense costs in peacetime may seem too burdensome for the state budget, but their long-term low level has a negative impact on the combat capability of the Armed Forces of Ukraine. On the other hand, the level of defense spending should be such as to create conditions for the development of the country's economy, not to slow it down. Today, it is impossible to give an unambiguous answer about the direction of the impact of military spending on economic growth. Many publications mention only the existence of a conditional level to which the increase in military spending contributes to economic growth, but after exceeding it there is a negative impact on economic development. Therefore, the article presents a model of the connection between defense costs and economic growth in the context of reconciling the needs of national security and defense and the need to maintain optimal macroeconomic indicators of the country. The model is based on the analysis of data from 40 countries for the period from 2011 to 2020 in Excel and STATISTICA with the output of the final results in the form of tables. The individuality of the proposed model is that its application allows the analysis of the influence of a number of factors on the results of macroeconomic effects. The theoretical basis for determining the effects of military spending on macroeconomic stability is the theory of economic growth. In the future, the application of the proposed model will provide an opportunity to develop recommendations for increasing the country's economic growth. Further research may focus on finding optimization models for defense spending based on certain standardized macroeconomic proportions.