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Defense Spending and Unemployment in France
Authors:Julien Malizard
Institution:UMR 5281 ART-Dev, University Montpellier 1, Montpellier, France
Abstract:France has received little attention in the literature of defense economics, despite some outstanding features of the country’s situation. This study attempts to partially fill this gap with new empirical evidence which evaluates the influence of military expenditure on the unemployment rate between 1975 and 2008. Our estimation is based on the ARDL approach to cointegration. The results reveal that both defense and non-defense spending exert a negative influence on unemployment but that defense spending has a higher negative impact.
Keywords:Defense spending  Unemployment  ARDL approach
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