Knight, Malcolm D.
The Peace Dividend Military Spending Cuts and Economic Growth / Malcolm D Knight. [electronic resource] : Malcolm D Knight. - Washington, D.C. : International Monetary Fund, 1995. - 1 online resource (40 p.) - IMF Working Papers; Working Paper ; No. 95/53 . - IMF Working Papers; Working Paper ; No. 95/53 .
Although conventional wisdom suggests that reducing military spending may improve a country's economic growth performance, empirical studies have produced ambiguous results. This paper extends a standard growth model and estimates it using techniques that exploit both cross-section and time-series dimensions of available data to obtain consistent estimates of the growth-retarding effects of military spending via its adverse impact on capital formation and resource allocation. Model simulations suggest that a substantial long-run "Peace Dividend"--in the form of higher capacity output--may result from: (i) markedly lower military expenditure levels achieved in most regions during the late 1980s; and (ii) further military spending cuts that would be possible in the future if a global peace could be secured.
1451847335 : 15.00 USD
1018-5941
10.5089/9781451847338.001 doi
Military Expenditure
Military Expenditures
Military Spending
Military
Bulgaria
Central African Republic
Congo, Democratic Republic of the
Germany
Japan
The Peace Dividend Military Spending Cuts and Economic Growth / Malcolm D Knight. [electronic resource] : Malcolm D Knight. - Washington, D.C. : International Monetary Fund, 1995. - 1 online resource (40 p.) - IMF Working Papers; Working Paper ; No. 95/53 . - IMF Working Papers; Working Paper ; No. 95/53 .
Although conventional wisdom suggests that reducing military spending may improve a country's economic growth performance, empirical studies have produced ambiguous results. This paper extends a standard growth model and estimates it using techniques that exploit both cross-section and time-series dimensions of available data to obtain consistent estimates of the growth-retarding effects of military spending via its adverse impact on capital formation and resource allocation. Model simulations suggest that a substantial long-run "Peace Dividend"--in the form of higher capacity output--may result from: (i) markedly lower military expenditure levels achieved in most regions during the late 1980s; and (ii) further military spending cuts that would be possible in the future if a global peace could be secured.
1451847335 : 15.00 USD
1018-5941
10.5089/9781451847338.001 doi
Military Expenditure
Military Expenditures
Military Spending
Military
Bulgaria
Central African Republic
Congo, Democratic Republic of the
Germany
Japan