Military expenditure in developing countries raises complex questions regarding growth, development, security and governance. This chapter provides an analytical survey of the effects and causes of defense spending in developing economies. Using stylized facts, theoretical models and empirical...

Military spending can have positive or negative impact on economies. In the empirical literature, there is evidence for both hypotheses. In practice, the effect of military spending on the economy will depend on the geographic context and the type of military spending. The Middle East and North...