Role Of Military Expenditures Research Articles

Do military expenditures have an impact on the adoption of renewable energy in OECD nations? Evidence from a panel cointegration test approach

Purpose Today, many industries are implementing creative approaches in response to increasing environmental awareness. It is of great importance to answer the question of whether the military sector, one of the most important sectors, can support renewable energy (RE) adaptation. This study aims to examine how military spending affects the supply of RE in 27 Organization for Economic Cooperation and Development (OECD) nations as well as the regulatory function of factors such as innovation, international trade and oil prices between 1990 and 2021. Design/methodology/approach The study examines the effects of military spending, income, green innovation, international trade, oil prices and the human development index on the supply of RE using various econometric approaches, which are the cointegration test, moments quantile regression and robustness test. Findings The findings demonstrate that all factors, excluding military spending, quite likely affect the expansion of the renewable supply. Military spending negatively influences the RE supply; specifically, a 1% increase in military spending results in a 0.88 reduction in the renewable supply. In addition, whereas income elasticity, trade and human development index in OECD nations are higher in the last quantiles of the regression than in the first quantiles, the influence of military spending and innovation on renewable supply is about the same in all quantiles. Practical implications OECD nations must consider the practical implications, which are essential to assess and update the military spending of OECD countries from a green energy perspective to transition to clean energy. Based on the study’s overall findings, the OECD countries should incorporate the advantages of innovation, economic growth and international trade into their clean energy transition strategies to lessen the impact of military spending on renewables. Originality/value The study aims to fill a gap in the literature regarding the role of military expenditures in the RE development of an OECD country. In addition, the results of the methodological analysis can be used to guide policymakers on how military spending should be in the field of RE.

Natural Resources and Civil Conflict: The Role of Military Expenditures

Military expenditures significantly affect the relationship between the risk of civil conflict outbreak and natural resources. We show that a significant positive effect of natural resource rents on the risk of civil conflict outbreak is limited to countries with low military expenditures. In countries with high military expenditures, there is no significant effect of natural resource rents on civil conflict onset. An important message is thus that a conflict resource curse is absent in countries with sufficiently large military expenditures.

Terrorism and economic growth in Africa: understanding the role of military expenditure

ABSTRACT Across African countries, terrorism has become a major challenge to socioeconomic development. While there are studies that have examined the influence of terrorism on economic growth, this study adds to the existing literature by investigating the role of military expenditure on the relationship between terrorism and economic growth in Africa. The study utilised a dataset comprising 24 African countries for which terrorism activities have increased substantially in the last decades. Utilising an instrumental variable Fixed Effects model with standard errors that account for cross-sectional dependence, serial correlation and group-wise heteroskedasticity, the study revealed that, (1) terrorism has a detrimental effect on economic growth in the selected African countries, (2) the interactive effect of military expenditure and terrorism on economic growth is significantly positive, (3) the net effect of military expenditure on the relationship between terrorism and economic growth is positive when the number of terrorism incidents act as a proxy for terrorism but negative when the number of terrorism fatalities acts as a proxy for terrorism. However, this negative effect is substantially lower when compared to the unconditional effect of terrorism on economic growth in Africa. Policy recommendations based on these findings are discussed.

Terrorism and its Determinants: Panel Data Evidence from 94 Countries

In recent years, the world is plagued by terrorism which has slowed down economic growth and development across countries. This paper focuses on the terrorism affected countries to determine what actually causes terrorism. The paper utilized a comprehensive sample of 94 countries from 2005 to 2016 and employed suitable econometric techniques to estimate the specified models. The results revealed that low per capita income and political instability are the main driving forces behind prevalent terrorism. Similarly, the growths of both physical as well as human capital have reduced terrorism whilst inflation and government consumption have positively influenced terrorism. The role of military expenditures is observed to be dual as it impacted terrorism negatively in Muslim countries and positively in non-Muslim countries. Decreased corruption is found to be insignificant for the sample as whole but appeared to be having a negative impact on terrorism when the sample is divided between Muslim and non-Muslim countries. The robustness exercise has also revealed similar findings. Lastly, we found bidirectional causality between political instability and terrorism, political instability and corruption, government consumption and inflation and the growth of GDP per capita and the growth of physical capital stock. The paper suggests that countries where terrorism is on the rise shall focus on increasing income of the population, education, capital stock along with ensuring political stability to eradicate the problem of terrorism.

Economic Consequences of Armaments Production: Institutional Perspectives of J.K. Galbraith and T.B. Veblen

:J.K. Galbraith’s short book, How to Control the Military, boldly championed political and institutional reforms to curb “the military power.” Galbraith stood out among economists for his advocacy of arms reduction negotiations with the Soviet Union. He rejected the hypothesis that the Soviet Union nurtured an aggressive expansionary military policy. At the same time, he maintained that the tenor of national policy and the shaping of national priorities emanated from the Pentagon. Galbraith’s assertion that the military was the dominant force within the “military-industrial complex” was never empirically demonstrated. Nor did he adequately address the crucial role that military outlays played in advancing major technological innovations which underwrote the accumulation process. Veblen offered a more comprehensive analysis of the role of military expenditures, correctly showing that forms of “waste” are highly functional to the institutional and ideological structure of the U.S. economy. Military Keynesianism constituted the evolution of his conceptualization.

Military expenditure and the profit rate in Greece

This paper examines the effect of military expenditure on the profitability of the Greek economy for the 1962-1994 period. In the theoretical debate on the role of military expenditures they have alternatively been viewed either as a "burden on growth" (i.e. an unproductive drain of resources) or as a stimulating factor for demand, profitability and economic performance. This distinction is reflected in the Marxist tradition as well where in different theories of crisis, military expenditures have been treated either as an unproductive burden or as a savior of the capitalist system, mainly through their effect on the rate of profit. Our empirical tests for the relationship between military expenditure, the general Marxian rate of profit and the net rate of profit indicate that those expenditures have had a contradictory effect on profitability, stimulating effective demand in the short run, but affecting negatively both rates of profit over the long run.

The impact of defence expenditures on Arab industrial development

The purpose of this paper is to examine the role of military expenditures in affecting the pattern of Arab industrial development. In doing so, it attempts to determine whether military expenditures have stimulated increased levels of industrial output, or whether, through diverting resources away from industrial activity, they have depressed the expansion of the region's industrial diversification. By the use of factor and regression analysis, the main finding of the study is that defence expenditures in the Arab world have been somewhat neutral in impacting on industrial output. In contrast, the study found that non‐defence expenditures have tended to retard the region's industrial diversification efforts. These findings suggest that analysis of the relative skill intensities of civilian and defence expenditures might be a fruitful area for further research into the process of Arab industrialization.

Public and Private Technological Innovation Strategies in a Spatial Context: The Case of France

Some decisive elements of implicit or explicit technology policies have escaped policy attention in France. These elements and their relationship with patterns of regional development are highlighted in this paper. The ‘modernization’ strategy in France is examined first, and then the regional dynamics of high-technology production are explored. Subsequently, the role of military expenditure in regional development processes is evaluated. It is concluded that this implicit policy has dramatically altered the character of industrial activity bundles in selected regions and has greatly influenced their potential for future technology-intensive growth. The regional subsidies and incentive policies have proven less important, insofar as modernization and technological change is concerned, than the military expenditures. It is argued that there is little evidence that the impressive military procurement program is integrated with other aspects of regional policy and no evidence that it is playing a role in the industrial restructuring of the older industrial areas.

The Role of Military Expenditures in Pre‐Revolutionary Iran's Economic Decline

I told the Shah that if the Army budget were increased we could do little if any thing for agriculture, education or public health. He said, “Very well, then; we'll have to postpone those things.”This incident occurred in 1943, a year after the Shah had succeeded his father and was recounted by A. C. Millspough, then financial advisor to the Iranian government.By the 1970s, however, the Iranian government was denying the relevance of the “guns versus butter” tradeoff for the country. The Shah posed the problem differently, “What is the use of having an advanced industry in a country which could be brought to its knees when faced with any small asinine event?” Asked on a subsequent occasion whether the desire for maximum national power implicit in such defense expenditure was compatible with the efforts to achieve maximum economic development, he replied, “It is not only compatible but essential.

The Role of Military Expenditure in the Development Process: Peru; A Case Study, 1950-1980

The Role of Military Expenditure in the Development Process: Peru; A Case Study, 1950-1980

The Role of Military Expenditure in the Development Process: Chile 1952-1973 and 1973-1980; Two Contrasting Cases

The study of allocation of resources for military purposes to the Chilean Armed and Police Forces during the last thirty years can be analyzed in two periods: 1952—1973, when inward oriented strategies of economic development prevailed under a democratic regime, and 1973—1980, when the authoritarian government implemented an externally oriented strategy of economic development. Differences in the process of allocation of resources and in the forces affecting the decision-making process will emerge. Also the distinct impact of the military expenditure on development strategies should be clearly noted. This report is based on the main studies of the process of development during the thirty year period, on our own reconstruction of economic statistical data and military expenditure information available to the public, and on research of the allocation of resources for military expenditure during the democratic regime.

The Role of Military Expenditure in the Development Process: The Argentine Case, 1946-1980

The Role of Military Expenditure in the Development Process: The Argentine Case, 1946-1980