Military Expenditure and Growth in Less Developed Countries

In: The journal of conflict resolution: journal of the Peace Science Society (International), Band 27, Heft 2, S. 335-353

Abstract

This article analyzes the relationship between military expenditure and economic growth in less developed countries using cross-sectional evidence in a macrostatistical framework. Within the context of a fully specified empirical model it is found that military expenditure has a negative effect on growth and thus retards development. Specification sensitivity analysis is conducted to show that the results are robust.