The present study examines the effects of military expenditure on growth in Peru in the period from 1970 to 1996. By using a Deger-type Simultaneous Equations Model it is possible to break up the net effect into supply- and demand-side influences. The former consist of positive externalities of...

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)...

Research on the factors that determine the level of military expenditure or military burden in countries, suggest that the dynamics of the determinants of military spending will be best understood by case studies of individual countries and studies of groups of relatively homogeneous countries....

Even though the military expenditure - economic growth relationship has been intensively investigated in the defence economics literature, few studies have been devoted to investigate the nature of military expenditure related employment in armed forces, civil service and in the industries that...

Fiji's total debt stands at 65% of GDP. Domestic debt constitutes 55% of GDP. The goal of this paper is to investigate whether military expenditure has contributed to Fiji's exploding debt levels over the period 1970 to 2005. Our empirical analysis, conducted within a cointegration and vector...

Empirical modeling of arms race between India and Pakistan has been a focus of interest in many studies. Nevertheless, the possibility of asymmetric dynamics between the variables under question seems to be ignored in these studies. The purpose of this paper is to fill this gap of the earlier...

We present a case study analysis of the impact of coups d'état on defence spending. We use the synthetic control method and compare the evolution of the defence burden for countries affected by coups with the evolution of an artificial control group. We find that successful coups determine a...

This paper analyses the convergence between countries in relation to the catch-up hypothesis concerning the level of total productivity. The catch-up hypothesis claims that poor countries tend to grow faster than rich countries through the international diffusion of knowledge and technology. We...

This paper investigates the relationship between defence expenditure and economic growth proxy by gross domestic product (GDP). In addition to these variables, a number of macroeconomic variables, which include exchange rate (EXRT),inflation rate (INF),lending rate(LR),gross capital formation...