Defense Spending And Economic Growth

This book examines the impact defense spending has on economic growth. While defense spending was not deliberately invented as a fiscal policy instrument, its importance in the composition of overall government spending and thus in determining employment is now easily recognized. In light of the collapse of the Soviet Union and the consequent reduction in the threat to the security of the United States, maintaining defense spending at the old level seems indefensible. The media has concentrated on the so-called peace dividend. However, as soon as the federal government is faced with defense cuts, it realizes the macroeconomic ramifications of such a step. Based on studies included in this volume, we examine the effects of defense spending on economic growth and investigate how the changed world political climate is likely to alter the importance and pattern of defense spending both for developed and developing countries.

This book examines the effects of defense spending on economic growth and investigates how the changed world political climate is likely to alter the importance and pattern of defense spending both for developed and developing countries. .

This book is an intellectual contribution of policy scientists and researchers from different academic institutions in different parts of the world. The Arab Spring, the rise of ISIS and terrorism ignite the debate on studying conflict and natural resources. Uniquely, the book discusses the sources of the conflicts and the institutions that are managing the conflicts. The natural resources, defense spending, conflict and human welfare are intertwined. In support of the ‘resource curse’ hypothesis, the book shows that an abundance of natural resources, particularly oil, encourages an increase in military spending and lower economic growth. In addition, the good economic and political institutions do reduce the hazard of conflict; and strong political institutions for checks and balances appear to weaken the impact of natural resources on conflicts. The book also examines the relationship between defense and social welfare expenditures – specifically, health and education. Shedding light on the complicated nature of the relationship between defense spending, inequality, and types of political and welfare regimes gives us a deeper understanding of the type of democratic systems that will likely improve social welfare. In studying the political economy of defense spending, the book shows the link between public opinion toward defense spending and voters' support for candidates. The analysis shows that party identification or having a vested interest in defense industries do correlate with a preference for increasing defense spending. This book was published as a special issue of Defence and Peace Economics.

This report presents an exploration of the historical relationship between national economic growth and military expenditures in five "great power" countries: Germany, France, Russia, Japan, and the United States. Using statistical as well as case study methodologies, it examines how each country's military expenditures responded to increases in output levels and rates of growth over the period 1870-1939 and proposes plausible explanations for the relationship in each country. If the historical experience holds true, economic growth in some of the present-day candidates for great-power status will spur them to increase their rate of military expenditure growth and, as a result, their military capabilities. As we show, however, each country is unique, and strong economic growth by no means implies automatic expansion of military spending or capabilities. In fact, the historical record suggests that perceived threats from abroad may be the most significant factor contributing to increases in military expenditure in potential great powers. This distinction is important because policies designed to deter foreign military expansions motivated by ambition may have perverse effects if foreign military expansions are in fact motivated by fear. This report should be of particular interest to policymakers concerned about the prospect of increased military expenditures by large and rapidly growing economies. The research was sponsored by the Deputy Chief of Staff for Intelligence and was conducted in RAND Arroyo Center's Strategy, Doctrine, and Resources Program. The Arroyo Center is a federally funded research and development center sponsored by the United States Army.

Expert essays bring together material from many developed and developing countries to determine how defense spending can affect welfare provision and economic growth.

As many countries have increased their budgets to allow for newer technologies and a stronger military force, defense spending has become a popular debate topic around the world. As such, it is vital to understand the interplay between the military expenditure and economic growth and development across countries. The Handbook of Research on Military Expenditure on Economic and Political Resources is a critical scholarly publication that explores the interplay between the military expenditure and economic growth and development across countries. Featuring coverage on a wide range of topics such as defense management, economic growth, and dynamic panel model, this publication is geared towards academicians, researchers, and professionals seeking current research on the interplay between the military expenditure and economic growth and development across countries.