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: | , |
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| Format: | Article |
| Language: | English |
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Collegium of Economic Analysis, SGH Warsaw School of Economics
2023-06-01
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| 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 |
| _version_ | 1827911500257296384 |
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| author | Rafał Woźniak Jacek Lewkowicz |
| author_facet | Rafał Woźniak Jacek Lewkowicz |
| author_sort | Rafał Woźniak |
| collection | DOAJ |
| description | 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. |
| first_indexed | 2024-03-13T02:04:06Z |
| format | Article |
| id | doaj.art-3de1eebc676b4ba98973497a1a106cc9 |
| institution | Directory Open Access Journal |
| issn | 2300-5238 |
| language | English |
| last_indexed | 2024-03-13T02:04:06Z |
| publishDate | 2023-06-01 |
| publisher | Collegium of Economic Analysis, SGH Warsaw School of Economics |
| record_format | Article |
| series | Gospodarka Narodowa. The Polish Journal of Economics |
| spelling | doaj.art-3de1eebc676b4ba98973497a1a106cc92023-07-01T09:51:50ZengCollegium of Economic Analysis, SGH Warsaw School of EconomicsGospodarka Narodowa. The Polish Journal of Economics2300-52382023-06-013142284610.33119/GN/168221168221Can We Have More Butter and Guns Simultaneously? An Endogeneity PerspectiveRafał Woźniak0https://orcid.org/0000-0001-9940-3771Jacek Lewkowicz1https://orcid.org/0000-0001-9430-4926Faculty of Economic Sciences, University of Warsaw, PolandFaculty of Economic Sciences, University of Warsaw, PolandDrivers 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.https://gnpje.sgh.waw.pl/Can-We-Have-More-Butter-and-Guns-Simultaneously-An-Endogeneity-Perspective,168221,0,2.htmleconomic developmentmilitary expendituresarms raceendogeneity |
| spellingShingle | Rafał Woźniak Jacek Lewkowicz Can We Have More Butter and Guns Simultaneously? An Endogeneity Perspective Gospodarka Narodowa. The Polish Journal of Economics economic development military expenditures arms race endogeneity |
| title | Can We Have More Butter and Guns Simultaneously? An Endogeneity Perspective |
| title_full | Can We Have More Butter and Guns Simultaneously? An Endogeneity Perspective |
| title_fullStr | Can We Have More Butter and Guns Simultaneously? An Endogeneity Perspective |
| title_full_unstemmed | Can We Have More Butter and Guns Simultaneously? An Endogeneity Perspective |
| title_short | Can We Have More Butter and Guns Simultaneously? An Endogeneity Perspective |
| title_sort | can we have more butter and guns simultaneously an endogeneity perspective |
| topic | economic development military expenditures arms race endogeneity |
| url | https://gnpje.sgh.waw.pl/Can-We-Have-More-Butter-and-Guns-Simultaneously-An-Endogeneity-Perspective,168221,0,2.html |
| work_keys_str_mv | AT rafałwozniak canwehavemorebutterandgunssimultaneouslyanendogeneityperspective AT jaceklewkowicz canwehavemorebutterandgunssimultaneouslyanendogeneityperspective |