Arms or butter: The economic effect of an increase in military expenditure

Yang, Heewon; Hong, Chanyoung; Jung, Sungmoon; Lee, Jeong‐Dong

doi:10.1016/j.jpolmod.2015.03.014

Cited by 16 publications

(6 citation statements)

References 15 publications

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“…Pieroni et al (2008) find that the effect of defence expenditure on output growth depends on the long-run equilibrium model that includes monetary policy variables and non-defence spending. In the long run, raising the tax rate has been an effective policy response in terms of freeing up more resources for the supplementary defence budget, than a reduction in the non-military expenditure coupled with a decrease in educational investments (Yang, Hong, Jung, & Lee, 2015).…”

Section: Defence Spending and Economic Growth Linkagesmentioning

confidence: 99%

Does Defence Spending and its Composition Affect Economic Growth in India?

Mohanty

Panda

Bhuyan

2020

Margin: The Journal of Applied Economic Research

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The article investigates the relationship between economic growth and defence expenditure in India from 1970–1971 to 2015–2016. By using the Autoregressive Distributed Lag and Toda-Yamamoto Granger Causality approach, the empirical results find that defence expenditure has a positive and significant impact on economic growth in India. The study also finds that capital defence expenditure has a positive and significant effect on economic growth, while revenue defence expenditure does not have any substantial influence on it. The causality test confirms a bidirectional causality between defence expenditure and economic growth, while it finds a unidirectional causality that runs from capital defence expenditure to economic growth. The study suggests that defence spending, especially capital defence spending, should be encouraged to enhance economic growth in the Indian economy. JEL Classification: H56, O40, C32

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Section: Defence Spending and Economic Growth Linkagesmentioning

confidence: 99%

Does Defence Spending and its Composition Affect Economic Growth in India?

Mohanty

Panda

Bhuyan

2020

Margin: The Journal of Applied Economic Research

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“…It can also be argued that making a linear argument for any industry simply on the basis of jobs can be problematic, if the jobs being created are harmful to society-for example, the huge employment created by the highly pollution-intensive arms trade (Yang et al 2015). Instead, what is needed is a consideration of opportunity costs of particular forms of employment with a view of livelihoods that considers various potential paths to development that may involve a short-term slow-down in job creation in pollutionintensive sectors to deliver a more long-term and sustainable job creation in other sectors (Elliott and Lindley 2017).…”

Section: Pollution Abatement's Negative Impact On Economic Growthmentioning

confidence: 99%

Pollution and economic development: an empirical research review

Ali

Oliveira

2018

Environ. Res. Lett.

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Pollution and the economy seem to have been inextricably linked throughout human history. Yet the relationship between environmental harm and economic development is complex and its understanding has been fragmented by disciplinary biases. Economists and environmental scientists have diverged on the urgency of abatement mechanisms and the marginal returns on investment on control technologies and social adaptations. The Environmental Kuznets Curve hypothesis has dominated this discourse, but is only one part of a broader pollution-economy nexus. As we consider a societal shift towards a circular economy, there is a need to consider a more integrated framework for analyzing the empirical evidence that connects pollution and economic development, and its implications for human well-being and the achievement of the sustainable development goals. This paper develops the main connections between pollution and economic development by reviewing the existing empirical evidence in the literature.

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“…They also reported that return to two factors; labour and land are affected by conflict intensity. In the Republic of Korea, Yang et al [2015] examined the effect an increase in military expenditure would have on the economy and found that to have better effect on GDP then indirect tax rate should be raised while for gross output, the solution is increasing corporate income tax. Wang et al [2012] examined the effect of military spending on the members of the Economic Co-operation and Development organisation using the Malmquist productivity index.…”

Section: Literature Reviewmentioning

confidence: 99%