Abstract
The Purpose. This research is to investigate the relationship between the variables of technological innovation, research and development costs, economic growth, sales and export of weapons and military costs in Iran for the years 2000 to 2017. Design/Methodology/Approach. In this study, we examine using Autoregressive Distributed Lag (ARDL) method to explore the estimating the impacts of technological innovation, research and development costs, economic growth, sales and export on military costs. Findings/Implications. The results of this study showed that the impact of technological innovation and research and development costs on military costs is negative in short-term and long-term. Although the effect that these two variables have on military spending in the short-term is very close, in long-term the effect that research and development costs have on military spending is far greater and more significant. Also, the impact of economic growth on Iran’s defense economy is much less than the variables of technological innovation and research and development costs. So that this effect will be less in long-term. But, the amount of arms sales and exports in the short-term has a positive effect on defense spending, but in long-term it becomes negative and increase in arms sales and exports can help Iran’s defense economy. Originality. The countries defense economy can always have positive effects on military and civilian research and development, scientific innovation and technological progress, in this condition that the country’s macroeconomics can spend military spending on research and development and support innovation and inventions. Eventually adopt arrangements that use the innovations of the defense industry in the civilian sector, which will lead to economic growth. This is the experience of many developed countries that have been able to use the technological advances and innovations of the military sector in the civilian sectors as well, and to cause the economic progress and development of their country.
Highlights
Economics and its relationship to militarism, called defense economics, is a very important and complex issue that can be considered from different angles
It is clear that in order to achieve growth and prosperity in the country’s defense economy sector and reduce military spending, as in other economic sectors, military spending must be directed towards research and development and support for technological innovations
What is clear is that in order to achieve growth and prosperity in the country’s defense economy and reduce military spending, as in other economic sectors, military spending must be directed towards research and development and support technological innovation, which will increase productivity and efficiency in this sector and the reduction of costs have reduced the negative effects on the country’s economic growth and can even help it
Summary
Economics and its relationship to militarism, called defense economics, is a very important and complex issue that can be considered from different angles The economy can both grow and be damaged by military activity. It is clear that in order to achieve growth and prosperity in the country’s defense economy sector and reduce military spending, as in other economic sectors, military spending must be directed towards research and development and support for technological innovations. This will increase productivity and efficiency in this sector and the reduction of costs reduced the negative effects on the country’s economic growth and can even help it
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