Revisiting the Defense–Growth nexus in European countries

This study revisits the long run and dynamic causal linkages between defense spending and economic growth in 15 selected European countries for the period 1988–2010 by utilizing recent developments in non-stationary panel data analysis. To this end, the series properties of per capita defense spending, per capita real capita stocks, and per capita real GDP are investigated by the panel unit root tests with and without breaks that support evidence on unit root. The panel cointegration tests with and without breaks are also subsequently employed to investigate whether there exists a long-run equilibrium relationship between these three variables. Finally, our causality analysis from panel vector error-correction model suggests that there is a feedback relation between real capital stock and real GDP in both short and long run, a one-way Granger causality running from real GDP to defense spending in both short and long run, and defense spending only Granger causes real capital stock in the long run.     

A case study of redundant defence workers

In this article, the influence of conflict on the economies of neighbouring countries is discussed. The results from previous papers show a strong negative effect for an entire area around a country suffering from conflict, but this paper reaches a different conclusion, by using more recent data and adjusting the methodology previously employed. Additionally, a new type of contiguity matrix is constructed and used in the actual analysis. The final analysis consists of a large number of regressions and concludes that conflict actually has two opposing effects. First, like conflict countries themselves, directly contiguous countries actually suffer from the negative effects of proximate conflict. Secondly, however, there is also a positive spillover of conflict, which affects non‐contiguous countries and this effect is larger for countries that are closer to the conflict country. The results from the paper predominantly hold for the most violent kind of conflict.     

Economic theorizing of conflict: Historical contributions,future possibilities

This article is organized around two major topics addressed by nineteenth and early twentieth century economists: (1) international economic relations and war and (2) economic activity in the shadow of conflict. My thesis is that an early and neglected reservoir of economic thought on peace and war exists and valuable perspectives on research in defense and peace economics can be gained by tapping into it.     

Accounting for army recruitment: White and non-white soldiers and the British Army

A statistically based enquiry into recruitment into the British Army over the period 1987-2000 shows that two factors tend to induce young men to enlist: high levels of unemployment in the civilian sector and positive signals from the authorities that the Army is in a recruiting phase. The same result obtains, broadly speaking, in the context of both white and non-white (ethnic minority) recruitment, although the willingness of ethnic minority young men to contemplate an Army career is only about a quarter of that of white men, other things being equal. Correspondingly, the Army shows no signs of reaching the target agreed with the Commission for Racial Equality in 1997 for a 1 percentage point increase annually in the percentage of recruits being drawn from the ethnic minorities. This article has something to say about how the Army might improve its performance in this regard by offering more in-service training and education to otherwise underqualified recruits and concentrating recruitment effort on regions of high ethnic minority unemployment.     

Defense Spending and Economic Growth: Some Empirical Evidence from the Arab Gulf Region

The present paper investigates the causal relationship between defense spending and economic growth in six Gulf countries for the period 1975-1998. I use Granger-causality test within a multivariate error-correction framework to explore the existence and direction of causality between these two variables. The empirical results indicate that neither growth nor defense can be considered exogenous and that the relationship between them cannot be generalized across countries. Two implications can be derived from these findings. One is the need for more studies, especially from developing countries, using time-series data. The other is that decisions on defense spending should be based on each country's socio-economic circumstances. Given the small sample size, however, caution is advised in considering the above results and their implications as final.