Military Expenditure, Economic Growth and Heterogeneity

dc.creatorDunne, John Paul
dc.creatorTian, Nan
dc.date2013-08-01T13:23:28Z
dc.date2013-08-01T13:23:28Z
dc.date2013-06
dc.descriptionThis paper examines the impact of military expenditure on economic growth on a large balanced panel, using an exogenous growth model and dynamic panel data methods for 106 countries over the period 1988-2010. A major focus of the paper is to consider the possibility group heterogeneity and non-linearity. Having estimated the model for all of the countries in the panel and finding that military burden has a negative effect on growth in the short and long run, the panel is broken down into various groupings based upon a range of potentially relevant factors and the robustness of the results is evaluated. The factors considered are different levels of income, conflict experience, natural resources abundance, openness and aid. The estimates for the different groups are remarkably consistent with those for the whole panel, providing strong support for the argument that military spending has adverse effects on growth. There are, however, some intriguing results that suggest that for certain types of countries military spending has no significant effect on growth.
dc.identifier978-1-920517-36-6
dc.identifierhttp://hdl.handle.net/11090/611
dc.identifier.ris TY - Working Paper DB - OpenUCT DP - University of Cape Town KW - Military expenditure KW - Economic growth KW - Conflict KW - Development LK - https://open.uct.ac.za PB - University of Cape Town PY - T1 - Military Expenditure, Economic Growth and Heterogeneity TI - Military Expenditure, Economic Growth and Heterogeneity UR - ER - en_ZA
dc.languageen
dc.publisher.departmentSALDRUen_ZA
dc.publisher.facultyFaculty of Commerceen_ZA
dc.publisher.institutionUniversity of Cape Town
dc.relationWorking Paper;95
dc.subjectMilitary expenditure
dc.subjectEconomic growth
dc.subjectConflict
dc.subjectDevelopment
dc.titleMilitary Expenditure, Economic Growth and Heterogeneity
dc.typeWorking Paperen_ZA
uct.type.publicationResearchen_ZA
uct.type.resourceWorking Paperen_ZA
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