2003
DOI: 10.1080/10242690302938
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An empirical study of the spin-off effects of military spending

Abstract: The article explores the spin-off effect controversy surrounding the role of military spending in economic development by investigating its impact on output in six industries linked to the military. The article's econometric investigation does not support the case for spin-off effects. The results suggest that military spending's direct impact on output in each industry is negative or insignificant depending on whether adjustments for trade in armaments are made. The results also fail to substantiate physical … Show more

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Cited by 8 publications
(4 citation statements)
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“…Therefore it is more likely that there will be more spin-on (civil technology applied to the defence sector) than spin-off (defence technology used in the civil sector) cases in a country such as Finland. It should be noted that Kelly et al (21) argue against positive spin-off effects. However, they view the issue more from the general military spending perspective than the R&D spin-off perspective.…”
Section:  mentioning
confidence: 97%
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“…Therefore it is more likely that there will be more spin-on (civil technology applied to the defence sector) than spin-off (defence technology used in the civil sector) cases in a country such as Finland. It should be noted that Kelly et al (21) argue against positive spin-off effects. However, they view the issue more from the general military spending perspective than the R&D spin-off perspective.…”
Section:  mentioning
confidence: 97%
“…The information model of the enhanced collaboration between the defence establishment and the national defence industry21 …”
mentioning
confidence: 99%
“…In essence, according to (d' Agostino et al, 2019), "the debate over the effects of military spending on growth continues to develop, with no consensus". A group of works found it is not sufficient to explain significantly the evolution of the gross domestic product (GDP) growth rate, as in (Deger and Sen, 1983;Chowdhury, 1991;Kelly and Rishi, 2003;Sala-i-Martin et al, 2004;Dunne et al, 2005;Gold, 2005;Yakovlev, 2007;Heo, 2010or Augier et al, 2017. Harding (1962) findings revealed that spending on defence has a long-term negative effect on economic growth and insignificant short-term impact.…”
Section: Defence Economicsmentioning
confidence: 99%
“…A similar approach was developed byKelly and Rishi (2003) when estimating a production function for defence expenditure.…”
mentioning
confidence: 97%