Abstract
Abstract This study examines the complexities involved in calculating the impact of military spending on economic growth, as well as the reasons for the lack of consensus in the academic literature. It explores econometric approaches for panels and provides a brief overview of economic theory, highlighting the difficult identification challenges involved in identifying the connection between military expenditures and output. Using the enlarged SIPRI military spending data, a relatively large and balanced panel of nations for the period 1960-2014 is constructed. Rather than focusing on the direct relationship between military spending and economic growth, this paper emphasizes the investment channel. It presents estimates of various models analyzing the interaction between the three variables and concludes that the data do not indicate strong relationships between military expenditure and investment or growth. Given the identified theoretical and economic issues, this is not unexpected.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Proceedings of the International Conference on Business Excellence
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
