Book review

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

Causal analysis of Australian economic growth and military expenditure: A note

Chowdhury (1991) applied Granger causality methods to military expenditure and economic growth series in 55 developing countries. This note applies a similar approach to Australia and finds no causal relationship between military expenditure and growth in either direction.     

MILITARY EXPENDITURE AND ECONOMIC GROWTH IN MIDDLE EASTERN COUNTRIES: A DYNAMIC PANEL DATA ANALYSIS

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.     

MODELS OF MILITARY EXPENDITURE AND GROWTH: A CRITICAL REVIEW

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.     

ANALYSING DEFENCE DEPENDENCY: THE IMPACT OF THE ROYAL NAVY ON A SUB‐REGIONAL ECONOMY

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.     

The Colonial War revisited

The Carnation Revolution on 25 April 1974 toppled the authoritarian regime in Lisbon. It is fallacious to conclude, however, that the 1974 coup d’état signaled Portugal's defeat in the Colonial War. The status of each conflict on the eve of the Carnation Revolution varied, and it was by no means inevitable that Portugal would have been defeated in all three theatres had the coup not occurred. This brief research note therefore advances a novel approach to examining the Colonial War by assessing the outcomes prior to the 1974 coup. In particular, the author proposes that Portugal achieved military victory in Angola and Mozambique, but was defeated in Guinea-Bissau.     

BANNING BIOLOGICAL WEAPONS

The Biological and Toxin Weapons Convention (BTWC) underpins the international regime to control biological weapons. The strength of the treaty however relies on national implementation. The first step for many states party to the Convention is drafting appropriate national laws and regulations. So far, 32 countries in Africa are signatory to the BTWC. More recently, in 2004, the United Nations Security Council adopted resolution 1540, which requires all UN Member States to put in place legislation to prevent the illicit trafficking of material that could be used to develop weapons of mass destruction. The need for such wide-ranging legislation is recognised African countries but its creation and implementation pose specific challenges.     

MICRO-DISARMAMENT IN WEST AFRICA

This article explores the proliferation of illicit small arms and light weapons in the West African sub-region and efforts by the regional Economic Community of West African States (ECOWAS) to deal with the problem through the ECOWAS Declaration of a Moratorium on the Importation, Exportation and Manufacture of Small Arms and Light Weapons in West Africa. The paper analyses the degree of compliance with the Moratorium by four ECOWAS member states, namely, Ghana, Nigeria, Sierra Leone and Mali.     

Determinants of military expenditure and the role of globalisation in a cross-country analysis

Abstract

Anecdotal evidence offers conflicting views on the impact of globalisation on military expenditure. We contribute to the existing literature by investigating the effect of globalisation on military expenditure in 82 countries for the period, 1989–2012. After introducing economic and strategic variables into the model, we utilise the dynamic panel generalised method of moments system to estimate the relationship in the variables. The empirical findings reveal that globalisation reduces both military burden and real military expenditure. The findings are consistent, irrespective of the globalisation indicator adopted. The policy implications of the results are explained.