This study reexamines the relationship between growth and defense spending in developing countries. It differs from previous studies as it recognizes differences in the borrowing capacity of each country. We hypothesize that a negative relationship will exist between defense and economic growth...

Recent research on the determinants of Third World military expenditures has indicated that economic variables show great promise in providing a framework as to the underlying causes of Third World defense allocation decisions. Building on this research, we test the hypotheses that the level of...

In the last twenty years, there has been a growing interest in quantifying the `guns versus butter' tradeoff facing developing countries. This article examines Pakistan's military expenditures between 1973 and 1986 and estimates both a short-run impact model and long-run adjustment model to...