Modeling the Defense-Growth Nexus in Guatemala

Reitschuler, Gerhard; Loening, Josef

doi:10.1016/j.worlddev.2004.08.008

Cited by 27 publications

(14 citation statements)

References 18 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…There are two ways we can see the relationship between defense spending and economic growth: first, regression approach, where the direction of causality does not serious matter and second, time series approach, where the direction of causality does serious matter. A number of research papers have been concerned with the empirical relationship between defense spending and economic growth in different countries over different periods (see Hirnissa et al, 2008;Yildirim and Ocal, 2006;Yildirim et al, 2005;Reitschuler and Loening, 2005;Yildirim et al, 2005;Halicioglu, 2004;Kollias et al, 2004;Ocal, 2003;Shieh et al, 2002;Atesoglu, 2002;Dakurah et al, 2001;Dunne et al, 2001;Stroup and Heckelman, 2001;Frederiksen and McNab, 2001;Kollias and Makrydakis, 2000;Dunne and Vougas, 1999;Georgiou et al, 1996;Nadir, 1993;Chowdhury, 1991;Frederiksen, 1991;Alexander, 1990;Frederiksen and LaCivita, 1987;Looney and Frederiksen, 1986;Joerding, 1986). The empirical findings are, nevertheless, very contradictory.…”

Section: Introductionmentioning

confidence: 99%

Defense Spending and Economic Growth in China, India, Nepal and Pakistan: Evidence from Cointegrated Panel Analysis

Pradhan¹

2010

IJEF

View full text Add to dashboard Cite

The study investigates the nexus between defense spending and economic growth in China, India, Nepal and Pakistan. The empirical analysis is based on integration and cointegration properties of data over the period [1988][1989][1990][1991][1992][1993][1994][1995][1996][1997][1998][1999][2000][2001][2002][2003][2004][2005][2006][2007]. The long run relationship between defense spending, economic growth and public debt are identified in a cointegration framework. The paper finds bidirectional causality between economic growth and public debt in China and India; unidirectional causality from defense spending to economic growth in China and Nepal, unidirectional causality from public debt to defense spending in India, and unidirectional causality from economic growth to public debt in Pakistan. The panel Granger causality test, however, confirms the presence of bidirectional causality between public debt and economic growth. The cointegration test at the end suggests that defense spending of a particular country can affect the defense spending of other country.

show abstract

Section: Introductionmentioning

confidence: 99%

Defense Spending and Economic Growth in China, India, Nepal and Pakistan: Evidence from Cointegrated Panel Analysis

Pradhan¹

2010

IJEF

View full text Add to dashboard Cite

show abstract

“…Their results show that there is a significant negative relationship going from military expenditures to economic growth. However, in the case of Guatemala, Reitschuler and Loening (2005) actually find a positive effect at lower ranges of spending. These authors use a factor productivity approach to show that there is a strong non-linear effect of defence spending on economic growth.…”

Section: <Table 2 Approximately Here>mentioning

confidence: 80%

“…This is fine in the case of e.g. Bilmes and Stiglitz (2008) or Reitschuler and Loening (2005), who specifically choose to address one particular element (the military cost of intervention and the influence of military expenditure on GDP growth respectively). However, when one sets out to analyse the total costs of a particular conflict, one has to take all elements that may contribute to that total into account.…”

Section: Case Studiesmentioning

confidence: 99%

How Many Bucks in a Bang: On the Estimation of the Economic Costs of Conflict

Brück¹,

Groot²,

Bozzoli³

2012

Oxford Handbooks Online

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte.

show abstract

“…Ramos (2004) finds a positive effect on growth in the case of Mexico. For Guatemala, Reitschuler and Loening (2005) report findings that point to a positive and significant externality effect of defence spending at low levels of such expenditure but not so for higher levels. Using a sample of Asian and Latin American countries, Murdoch et al (1997) find that defence is growth promoting but generates an opportunity cost in the form of displacing other public expenditures that also boost growth.…”

Section: Introductionmentioning

confidence: 89%

Defence expenditure and economic growth in Latin American countries: evidence from linear and nonlinear causality tests

Kollias

Paleologou

2017

Lat Am Econ Rev

View full text Add to dashboard Cite

Using SIPRI's new consistent database on military expenditures, the paper examines the economic effects of such spending in the case of the 13 Latin American countries. Employing both linear and nonlinear tests, the nexus between defence spending, economic growth, and investment is investigated for the period 1961-2014. Findings reported herein are not uniformed across all countries included in the sample. However, as a broad tentative generalization, they seem to be pointing to the absence of a strong and robust nexus between the variables examined.

show abstract

Modeling the Defense-Growth Nexus in Guatemala

Cited by 27 publications

References 18 publications

Defense Spending and Economic Growth in China, India, Nepal and Pakistan: Evidence from Cointegrated Panel Analysis

Defense Spending and Economic Growth in China, India, Nepal and Pakistan: Evidence from Cointegrated Panel Analysis

How Many Bucks in a Bang: On the Estimation of the Economic Costs of Conflict

Defence expenditure and economic growth in Latin American countries: evidence from linear and nonlinear causality tests

Contact Info

Product

Resources

About