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...

The purpose of this book is to analyse world military expenditure at the end of the 1980s, and to discuss its political and economic implications. After a decade of unprecedented expansion of international military spending, its level is falling, though modestly. Political developments in Europe...

This paper provides compelling evidence that equity market liberalization, as the most efficient way to smooth financial market frictions such as credit constraints, can alleviate persistent cross-dynastic income inequality by promoting increased human capital accumulation. The authors examine...

This paper provides compelling evidence that equity market liberalization, the most efficient way to smooth financial market frictions such as credit constraints, can alleviate persistent cross-dynastic income inequality through increasing the accumulation of human capital. We examine the impact...

Micro-foundations for the well-known gravity trade model are investigated. A new framework is adopted, together with assumptions that while strong are rather less restrictive than those typically employed in this context, thus enabling rather more complex and interesting results to be obtained...

This paper proposes a new approach to the analysis of the military expenditure - growth nexus, applied to the case of India. Military expenditure has, first, a direct impact on the central government budgetary decisions, with a variety of crowding-out effects on other public spending. Second,...