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1.
    
This paper reviews some of the theoretical and econometric issues involved in estimating growth models that include military spending. While the mainstream growth literature has not found military expenditure to be a significant determinant of growth, much of the defence economics literature has found significant effects. The paper argues that this is largely the product of the particular specification, the Feder–Ram model, that has been used in the defence economics literature but not in the mainstream literature. The paper critically evaluates this model, detailing its problems and limitations and suggests that it should be avoided. It also critically evaluates two alternative theoretical approaches, the Augmented Solow and the Barro models, suggesting that they provide a more promising avenue for future research. It concludes with some general comments about modelling the links between military expenditure and growth.  相似文献   

2.
    
Defence expenditures have both costs and benefits to the economy. The costs of defence expenditures are mainly emphasized as opportunity costs. On the other hand, defence spending may have growth‐promoting potential benefits: a rise in defence spending may result in a higher aggregate demand, production and employment. This paper examines empirically the effects of military expenditures on economic growth for Middle Eastern countries and Turkey, for the time‐period 1989–1999. The relationship between military expenditure and economic growth is investigated by using cross‐section and dynamic panel estimation techniques. Empirical analysis indicates that military expenditure enhances economic growth in the Middle Eastern countries and Turkey as a whole.  相似文献   

3.
This article examines military expenditure and defence policy in Norway from 1970 to 2013. Until 1990 Norwegian military expenditure remained between 2.5 and 3.0 per cent of Gross Domestic Product (GDP). Despite constant GDP shares, the military expenditure could not sustain a large and properly armed mobilization army. The constant nominal defence budgets of the 1990s accentuated the Norwegian Armed Forces' underlying imbalance between tasks, structure and budget. Around year 2000, large organizational reforms were effectuated, in which costs, the number of man-years, and underlying imbalances between tasks, structure and budget were reduced. Military expenditure increased in nominal terms between 2003 and 2013, while real military expenditure remained practically constant.  相似文献   

4.
    
This paper examines whether there are systematic differences in military spending between different types of autocratic regimes. We view military expenditure as an instrument a dictator can exploit in order to stay in power. How he utilises this instrument depends on the institutional set-up of his regime. We distinguish between military regimes, single party states and personalist regimes, and predict that military regimes should have the highest, whereas personalist dictatorships should have the lowest level of military spending. Using panel data on 64 dictatorships from 1960 to 2000, we find empirical evidence that our hypotheses are not rejected.  相似文献   

5.

Within the EU France devotes to defence the largest financial and human resources although it is not the richest country, nor has it the largest population or labour force. The cost of nuclear weapons accounts for only a small fraction of this abnormally high French defence effort. If France had restructured its military capabilities at the same rate as its principal Allies during the 1985–1994 period, then French defence outlays would be about 20% less than at present. The fundamental reasons for France's excess defence outlay comprise virtual total dependence on French sources for equipment, produced in very small numbers; a military presence outside of Europe; and too many personnel. These deficiencies, and the consequent absence hitherto of a “peace dividend”, indicate a failure to identify the country's real strategic requirements, and a lack of will to reorganise efficiently French defence. The recently announced reform towards an all‐professional force is unlikely to achieve the potential and desirable improvement in cost‐effectiveness.  相似文献   

6.
From the early 1980s Spain embarked on a wide‐ranging process of military reform, from organisational changes to defence industrial policies. Investment in military equipment was set to grow, policies were drawn up to foster the domestic defence industrial base, defence R&D rocketed, and Spain joined a myriad of international arms development programmes. Yet, by 1991 the process of reform had run out of steam. Expenditure planning proved unreliable, and firms suffered from sharp cutbacks in procurement expenditure. The model of defence industrial growth sketched in the mid‐1980s had floundered. The Spanish case provides an example of how the quest to maximise defence procurement from domestic sources can fall victim to industrial and budgetary constraints. Spanish defence producers are now becoming increasingly intertwined with foreign defence companies.  相似文献   

7.
    
For Smith, “defence” is presented as one of the three big areas requiring the “expenses of the sovereign or Commonwealth”, and therefore justifying state intervention in the economy, beside “justice” and “public works and public institutions”. Against the mercantilist thought, Smith considers that the process of liberalization is a condition of disarmament and peace. It supposes mainly the decolonization, the reduction of defence burden, the eradication of slavery, the denunciation of the mercantilist policy, and the international respect of free trade. Development is both a consequence of liberalization and the main cause of peace.  相似文献   

8.
    
La Conversion économique du secteur militaire, J. FONTANEL, Economica, Paris, 1994, pp. 112. Paperback. ISBN 2–7178–2650–5.  相似文献   

9.
    

Cyprus, a small island state, gained independence from British colonial rule in 1960. For more that half its history as an independent state Cyprus has been under occupation following the 1974 Turkish invasion. Despite the fact that it has faced war, invasion and occupation, Cyprus has allocated a comparatively small proportion of its national income to defence. The average defence burden—military expenditure as a share of GDP—during 1964–98 was around 2.5%. However, as a result of a substantial shift in defence policy during the past decade or so, the defence burden during the 1990s has increased, averaging about 4% of GDP as Cyprus decided to implement an extensive military modernization program aiming to present a more credible military deterrence vis‐a‐vis Turkey. Empirical estimations of a demand function for Cypriot military expenditure suggest that it is positively affected by alliance spillins and external military threat.  相似文献   

10.
    
The effect of military expenditure on employment is a matter of considerable importance. However, few of the standard economic analyses of unemployment take any explicit account of variations in military expenditure in their models. The purpose of this paper is to assess whether the prevalent neglect of this variable in labour economics is justified.

The paper briefly surveys previous estimates made of the employment effects of military expenditure. It then considers evidence from the simple dynamic reduced form regressions estimated on long historical series for the US and the UK and pooled post‐war data for 11 OECD countries. It does not suggest that the share of military expenditure is a significant influence on the unemployment rate. This implies that in analysing unemployment no special account need be taken of military expenditure and that the fear that reductions in the share of military expenditure will be associated with higher average unemployment levels is misplaced.  相似文献   

11.
    
The literature on economic aspects of defence in Israel is critically reviewed by subject: measuring the defence burden, the determinants of defence spending, the effects of defence spending on the economy, and the military‐industrial complex. An overview of the Israeli economy is provided, and some new econometric findings on the determinants of defence spending are presented. The paper concludes by addressing policy issues in the context of Israel's jubilee.  相似文献   

12.
    
An extensive literature on the effect of military expenditures on economic growth yields conflicting results. However, a crucial issue that has not been investigated in this context is the possible effect of inequality. The impact of military expenditures on economic growth in Turkey has also received substantial attention. Yet, the majority of these studies are not constructed based on a structural model, but rather examine the causality between the variables in question. Considering these two shortcomings in the literature and the lack of consistent results, this study attempts to provide further evidence for the relationship between military expenditures and economic growth for the case of Turkey by considering income inequality within an augmented Solow growth model. Our findings for the 1963–2008 period show that while income inequality has a positive impact on economic growth, military expenditures have no significant effect.  相似文献   

13.
The Western European defence industry used to be characterized by numerous constraints, especially in the small countries, subject to uneconomic defence production policies. It faces, since the end of the Cold War, a succession of new challenges such as budget restrictions, armament reductions and geopolitical upheavals. The EU is pushing in the direction of a cohesive foreign policy, including security and defence. Today, the emergence of a more consolidated European defence industry and the presence of oligopolistic European companies imply the definition of new roles for the EU and for its European Security and Defence Policy (ESDP). The solution is not protectionism, but more co‐operation to ensure effective defence production at a socially acceptable cost. In the framework of this co‐operation, defence companies in small and medium countries have a role to play as part of the supply chain to major weapon system integrators.  相似文献   

14.
    
The effect of military expenditure on economic growth in developing countries has been investigated by many empirical literatures. However, there is little consensus of that effect and the diversity seems to come from the use of different models and different estimators. This article applies the Augmented Solow Growth Model to examine the influence of military expenditure on economic growth for 35 developing countries over the period of 1975–2009. By using the system Generalized Method of Moments (GMM) estimators, empirical results indicate that defence has a negative and significant effect on economic growth in the sample countries.  相似文献   

15.
16.
This paper provides a methodology for estimating the economic impact of defence spending at a sub‐regional level. It does so by calculating the income and employment generated by Britain’s Royal Navy and associated defence activities in the City of Portsmouth and its surrounding area, during the financial year 2003–2004. In an era of military consolidation, the paper offers an insight into the multifaceted impact of defence‐related expenditure. Hence, it presents a generic framework that could prove useful to other researchers when seeking to measure the sub‐regional impact of naval, airforce and army facilities in other national contexts.  相似文献   

17.
    
This paper is a survey of Angola’s defence sector and policy from 1992, the year the civil war ended, to 2012. Angola achieved its independence upon the Popular Movement for the Liberation of Angola (MPLA) defeating National Union for the Total Independence of Angola. Since then, fuelled by its rich natural resources, the country has grown steadily. The MPLA military forces were a central factor behind independence and maintain their central role to this day. Moreover, Angola’s support for African peace with monitoring military missions is a clear indication that the country aims to intervene in African security and military issues, with its military capabilities funded by oil revenues.  相似文献   

18.
    
Budgetary restrictions resulting from the present international economic crisis have tightened the need to improve efficiency in defense spending, leading to the armed forces having to undertake their duties with fewer resources. Previous reports on the subject have looked into the determining factors and effects of military spending but very few studies have analyzed the determinants for the modernization of the methodology for assessing efficiency. Thus, using a multiple regression statistical model, we have analyzed the appraisal systems in place in 28 countries to identify factors that influence the development of economic assessment of military expenditure. Our findings have revealed three factors that may favor the improvement of appraisal systems with regard to military expenditure: the quality of governance, size of the armed forces, and unemployment levels.  相似文献   

19.
20.
How do countries transition from single service to joint operations? This article engages with the discussion on military innovation to argue that civil–military relations are the most important driver for jointness. In doing so it examines jointness in the Indian military. Relying on archival research and primary interviews this article sheds new light on the operations of the Indian Peacekeeping Forces (IPKF) in Sri Lanka from 1987–1990, the 1999 Kargil War and the Post-Kargil defence reforms. The main argument is that the Indian military’s transition to jointness has been ‘incomplete’ primarily because of its prevailing model of civil-military relations. This model prevents civilians from interfering in the operational issues of the military, including on matters pertaining to jointness. It therefore recommends more forceful civilian intervention to overcome the prevailing single service approach.  相似文献   

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