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Military spending and economic growth in South Asia: comment and reconsideration
Journal article   Open access   Peer reviewed

Military spending and economic growth in South Asia: comment and reconsideration

William R J Alexander
Defence and Peace Economics, Vol.24(2), pp.173-178
2013
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PDF - Author's Accepted Version463.61 kBDownloadView
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url
https://doi.org/10.1080/10242694.2012.679832View
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Abstract

military spending economic growth dynamic panel model
In a recent paper in this journal, Wijewerra and Webb study the connection between military spending and gross domestic product (GDP) in a group of five South Asian countries, finding a small but statistically significant positive relationship between military spending and GDP. This paper reviews their approach and proposes an alternative which tries to deal with the problems of omitted variables and variable construction. It finds, in contrast, that a higher share of military spending in GDP is associated with lower growth of GDP per capita.

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