Findings of the empirical study suggest that defense spending has a negative effect on economic growth, which aggravates during times of internal and external conflicts.
📌 3 Key Takeaways
🎯
Objective & Hypothesis:The relationship between defense spending and economic growth is an active topic of debate for a long time.
📊
Key Findings & Data:Defense spending may have negative consequences on the growth performance of developing countries in such conflict-ridden areas as the Middle East.
💡
Conclusion & Impact:Findings of the empirical study suggest that defense spending has a negative effect on economic growth, which aggravates during times of internal and external conflicts.
The relationship between defense spending and economic growth is an active topic of debate for a long time. Defense spending may have negative consequences on the growth performance of developing countries in such conflict-ridden areas as the Middle East. This study is conducted to investigate the effects of defense spending on economic growth in a panel of twelve Middle Eastern countries over the period 1998-2012. The approach suggested by Swamy and Arora (1972) was employed for the empirical study. Findings of the empirical study suggest that defense spending has a negative effect on economic growth, which aggravates during times of internal and external conflicts.
KÜNÜ, S., HOPOĞLU, S., BOZMA, G. (2016). Conflict, Defense Spending and Economic Growth in the Middle East: A Panel Data Analysis. International Journal of Economics and Financial Issues, Cilt: 6 Sayı: 1, 80–86. https://ajindex.com/articles/994598