Chapter 19 The economics of disarmament

Fontanel, Jacques

doi:10.1016/s1574-0013(05)80021-3

Cited by 16 publications

(5 citation statements)

References 36 publications

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“…After the Cold War, military spending declined, because of the difficulty to conceive and organise new military strategies, the public finance crisis and the collapse of economies in transition. 13 The excessive burden of military spending relative to GDP of the USSR is probably a factor in its economic exhaustion. 14 Military spending in excess becomes a burden on national economies.…”

Section: The International Security In Questionmentioning

confidence: 99%

For a General Concept of Economic and Human Security

Fontanel¹,

Corvaisier-Drouard²

2014

The Evolving Boundaries of Defence: An Assessment of Recent Shifts in Defence Activities

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International security is a constant threat to the pursuit of economic optimum. In the traditional economic analysis history, states are seen as agents in constant search for power, which leads to the emergence of conflicts of interests. The modern concept of security can be defined as the economic study of all the risks of short, medium and long term on the functioning of economic and social life. It can be divided into four sublevels: individual security, national security, international security and global security. The adoption of an enlarged approach to international security by integrating economic and environmental conditions highlights the expression of new collective priorities. Today, theories of security take into account the economic, human and social relationships, societal priorities and the balance of power in the international system. Human security implies a multi-disciplinary analysis, including human rights, state organisation, international relations and strategic studies. Security and sustainable development are deeply interconnected, which involves bearable production conditions for the environment in the long term,

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Section: The International Security In Questionmentioning

confidence: 99%

For a General Concept of Economic and Human Security

Fontanel¹,

Corvaisier-Drouard²

2014

The Evolving Boundaries of Defence: An Assessment of Recent Shifts in Defence Activities

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“…The use of resources in defense spending reduces other public spending and private sector spending. This situation negatively affects economic growth and development (Looney, 1994; Fontanel, 1995). On the other hand, civilian imports can be excluded and reduce foreign direct investment and foreign savings if the military expenditure is mainly used for military imports.…”

Section: Introductionmentioning

confidence: 99%

The effects of military expenditures on labor productivity, innovation and economic growth for the most militarized countries: panel data analysis

İnal

Gürdal

Değirmenci

et al. 2022

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PurposeThere is extensive literature on the effect of military expenditure on economic growth. However, there is also a wide gap in the literature on the relationship between productivity and innovation, which is considered the driving force of economic growth and military expenditures. To this end, this study examines the effect of military expenditures on economic growth, innovation and labor productivity for the period 1995–2019 in most militarized countries.Design/methodology/approachThe tests used in the study's empirical analysis are techniques that take into account cross-sectional dependence and heterogeneity. The stationarity of the variables was tested with the Pesaran’s (2007) unit root test. Then, empirical findings were revealed based on the analysis through Westerlund’s (2008) cointegration test and Emirmahmutoglu and Kose’s (2011) panel causality test.FindingsAccording to the empirical results, there is a long-run relationship, in other words, a cointegration between military expenditures and productivity, innovation and economic growth. Additionally, there are causality relationships between military expenditures and productivity, innovation and economic growth.Practical implicationsThese results support the arguments of military Keynesianism and the Benoit hypothesis.Originality/valueDespite the widespread theoretical debate, no empirical study tests the effect of military expenditure on productivity and innovation to the author's best knowledge. Hence, this study aims to fill this gap in the literature. Moreover, the fact that the econometric method used is based on second generation tests and the timeliness of the period range makes the study's findings more significant.

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“…The conflict lies in the fact that whatever resource defence sector uses up generates an opportunity cost for other sectors. Again, more expenditure on defence may claim bar in front of growth paths of an economy (Eshag, 1983; Fontanel, 1995; Giray, 2004; Looney, 1997). However, one cannot deny the fact that a nation needs military security and its improvement for being on the safe side from domestic and external threats.…”

Section: Introductionmentioning

confidence: 99%

“…However, it is seen for most of the developing nations that liberalisation exists with high percentage of imported defence activities (Brauer, 1998). Again, more expenditure on defence owing to liberalisation at the cost of domestic social development can hamper the growth trajectory of poor or emerging economies (Fontanel, 1995; Looney, 1997). Hence, it creates few questions among the readers, for instance, (i) whether more defence expenses is feasible in developing economies at the cost of economic growth?…”

Section: Introductionmentioning

confidence: 99%

National Defence Under Alternative Trade Policy Regimes: Theory and Evidence from Developing Countries

Chatterjee¹,

Chatterjee²

2020

Foreign Trade Review

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Defence mechanism for any nation is the way through which internal as well as external geo-political condition can be stabilised. Moreover, defence sector can also be treated as one of the most potential sectors regarding financial transactions and the relevance of it is valid both in autarky and in the regime of international trade. Using Granger Causality for a panel of 27 developing countries across Asian and South American continents, we have found that different trade measures are playing major role in the way of functioning of national defence. For further analytical purpose and also to select the most effective trade policy regime among the alternatives, we have adopted a trade theoretic framework. In this regard, we have used a four-sector general equilibrium trade model with special emphasis on defence as well as R&D to defence to illustrate the impact of trade liberalisation on defence system. From such setup and by using bootstrap policy simulation we have found that trade liberalisation in the form foreign direct investment (specific to the R&D to defence) as the most effective trade regime to claim gains from trade in the presence of defence dualism for any small open developing economy. Such comparative statics is critical from the policy perspective. Policymakers should be cautious before defence industry liberalisation. JEL Codes: H56, C33, F11, F14, F21, D58

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Chapter 19 The economics of disarmament

Cited by 16 publications

References 36 publications

For a General Concept of Economic and Human Security

For a General Concept of Economic and Human Security

The effects of military expenditures on labor productivity, innovation and economic growth for the most militarized countries: panel data analysis

National Defence Under Alternative Trade Policy Regimes: Theory and Evidence from Developing Countries

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