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The Economic Impact of Rent Seeking and Military Expenditures: A Comparison of Third World Military and Civilian Regimes

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  • Robert E. Looney

Abstract

. The general stereotype of modern Third World military regimes is that of ultra‐conservativism combined with military force to dismantle organizations of popular expression. These organizations through their rent‐seeking activities are assumed to have reduced overall rates of economic growth. Empirically, the paper does find some support for this line of argument. However, it is apparent that the traditional stereotypes are inappropriate. The two regime types differ largely in terms of contrasting styles of economic management. Military regimes create an environment where military expenditures tend to have a positive overall impact on economic growth Civilian regimes having less control over rent seeking groups do not appear to be able to combine rent seeking activities and military expenditures in a manner conducive to overall economic growth.

Suggested Citation

  • Robert E. Looney, 1989. "The Economic Impact of Rent Seeking and Military Expenditures: A Comparison of Third World Military and Civilian Regimes," American Journal of Economics and Sociology, Wiley Blackwell, vol. 48(1), pages 11-29, January.
    • Handle: RePEc:bla:ajecsc:v:48:y:1989:i:1:p:11-29
    DOI: 10.1111/j.1536-7150.1989.tb02083.x
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    Cited by:

    1. Shahrukh Khan, 2013. "The military and economic development in Pakistan," Chapters, in: Jeannette Wicks-Lim & Robert Pollin (ed.), Capitalism on Trial, chapter 4, Edward Elgar Publishing.
    2. Gulay Gunluk-Senesen, 2002. "Budgetary trade-offs of security expenditures in Turkey," Defence and Peace Economics, Taylor & Francis Journals, vol. 13(5), pages 385-403.

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