Does Military Spending Explode External Debt in Pakistan?

This paper investigates the effect of military spending on external debt in case of Pakistan for the period of 1973–2009. For this purpose, the autoregressive distributed lag bounds testing approach to cointegration is used to examine cointegration among the variables. The ADF, P-P, and ADF-GLS unit root tests are applied to test the integrating order of the variables. The Ordinary Least Square (OLS) and error correction method regressions are used to investigate the marginal impact of military spending on external debt in the long and short run. Our findings indicate the existence of cointegration that confirms the presence of a long-run relationship among military spending, external debt, economic growth, and investment. Further, our results reveal that a rise in military spending increases the stock of external debt; an increase in investment also increases external debt; however, there is an inverse effect of economic growth on external debt. An implication of the findings reported herein is that there is a need to formulate a comprehensive economic policy for curtailing external debt in case of Pakistan.     

Military expenditures,economic growth and spatial spillovers

The relationship between economic growth and military expenditure has been the subject of a large literature in defence economics. This study analyses the influence of military expenditures on economic growth in a global perspective for the time period 2000–2010 taking spatial dimension into account. The augmented Solow model is employed to investigate the defence-growth nexus using the cross-sectional data relating to 128 countries. Following a traditional regression analysis, spatial variations in the relationships are examined utilizing different spatial econometric specifications estimated by maximum likelihood. The regressions are compared with each other via likelihood ratio tests, and the spatial Durbin model is found to be the most appropriate one suggesting that the typical least-squares model is misspecified. Empirical evidence indicates that military expenditure has a positive effect on economic growth with a significant spatial dependence for the time period under consideration.     

Military spending and growth: a small open economy stochastic growth model

The paper analyzes the effects of military spending on economic growth in a small open stochastic endogenous growth model involving the supply-side and demand-side effects produced by military spending. We show that a rise in the military spending affects economic growth through four channels, including the crowding-out effect, the spin-off effect, the resource mobilization effect, and the portfolio effect. The net effect which depends on these four channels is ambiguous. Hence, we demonstrate that there exists an optimal defense burden that maximizes the economic growth rate.     

Mission Command in the Information Age: A Normal Accidents Perspective on Networked Military Operations

Theory on the use of information technology in military operations assumes that bringing together units in an information network helps units to work together. Decentralized command systems such as mission command have been proposed for these networks, so that units can adapt to changes in their turbulent working environments. Others have proposed centralized command systems that permit higher organizational levels to closely direct military operations. This article uses Perrow’s (1984, 1999) Normal Accidents Theory to propose that increasing interdependencies between units in information networks places incompatible demands on the design of networked military operations. It is concluded that networked military operations require decentralized command approaches, but only under the condition that interdependencies between modules of networked units are weak rather than tight. This precondition is essential for retaining control over networked military operations.     

War’s Horizon: Soldier-Led Adaptation in Iraq and Vietnam

Wartime adaptation is a process of adjustment from the war you planned for to the one you have. This process of adjustment is done, in part, by the practitioners of war in the theater of conflict–soldier-led adaptation. Drawing upon two case studies of gun truck development in Iraq and Vietnam I argue that soldiers created networks in order to adapt to battlefield challenges and that the pattern of those networks carries implications for the likelihood of formal adoption by the organization. Simply put, the pattern of the flow of ideas, resources, and skills across the battlefield may affect the likelihood of bottom-up adaptation.     

Space,the New Domain: Space Operations and Chinese Military Reforms

ABSTRACT

The Chinese military has embarked on a series of organizational and doctrinal reforms intended to better enable it to fight modern war. Prominent among these reforms is the growing emphasis on space to enable long-range precisions strikes and on counterspace to deny space capabilities to an adversary. The People’s Liberation Army (PLA) has officially designated space as a new domain and established an organization to command space forces. With this increased focus on space, the PLA may begin to develop a doctrine to govern the use of space in military operations. The higher priority given to space, especially space control, by the PLA coincides with similar actions by the US military, increasing the possibility of warfare in space and the risks of escalation.     

Reclaiming the Party’s Control of the Gun: Bringing Civilian Authority Back in China’s Civil-Military Relations

ABSTRACT

Since emerging as China’s top leader following the 18th Party Congress, Xi Jinping has moved swiftly to consolidate his formal authority as Central Military Commission chairman over the Chinese People’s Liberation Army. In redressing the civil-military imbalance wrought by Dengist economic reforms, the commander-in-chief has combined institutional mechanisms with the use of fear to impose authoritative civilian control over the military. This paper proposes that a combination of changes to the Chinese strategic environment has contributed to Xi’s utility of the anti-corruption campaign to purge the regime’s coercive forces of its previous underpinnings, and advances that the war on military malfeasance has given rise to a new set of dynamics in civil-military relations in post-Reform China.     

Guns and butter? Military expenditure and health spending on the eve of the Arab Spring

We examine the validity of the guns-versus-butter hypothesis in the pre-Arab Spring era. Using panel data from 1995 to 2011 – the eve of the Arab uprisings – we find no evidence that increased security needs as measured by the number of domestic terrorist attacks are complemented by increased military spending or more importantly ‘crowd out’ government expenditure on key public goods such as health care. This suggests that both expenditure decisions were determined by other considerations at the government level.