Can We Have More Butter and Guns Simultaneously? An Endogeneity Perspective
Drivers and outcomes of military expenditures are an important topic in geopolitics and public debate. It is often argued that increases in the military budget can boost the economy through extended military equipment production. What should then be noticeable is a feedback relationship between mili...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Collegium of Economic Analysis, SGH Warsaw School of Economics
2023-06-01
|
| Series: | Gospodarka Narodowa. The Polish Journal of Economics |
| Subjects: | |
| Online Access: | https://gnpje.sgh.waw.pl/Can-We-Have-More-Butter-and-Guns-Simultaneously-An-Endogeneity-Perspective,168221,0,2.html |
| Summary: | Drivers and outcomes of military expenditures are an important topic in geopolitics
and public debate. It is often argued that increases in the military budget
can boost the economy through extended military equipment production. What
should then be noticeable is a feedback relationship between military expenditures
and the current state of the economy. This paper investigates this reverse
relationship at the macro level using an unbalanced panel dataset of 173 countries
over the period 1949–2020. Our empirical analysis implies that the claimed positive
feedback loop between military expenditures and economic growth is either
completely absent or, at most, very weak. |
|---|---|
| ISSN: | 2300-5238 |