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Should education and military expenditures be combined for government economic policy?

Author

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  • Raul Caruso

    (Universita Cattolica del Sacro Cuore, Italy)

  • Anna Balestra

    (Universita Cattolica del Sacro Cuore, Italy)

Abstract

This article examines the impact of EDUMILEX, namely the ratio between investment in education and military expenditure, on economic performance. It uses panel data estimation methods for 60 countries over the period 2000–2018. The findings suggest the existence of a non-linear, cubic relationship between EDUMILEX and economic performance. In particular, EDUMILEX is positively associated with both GDP per capita and labor productivity. The results also show that the effect of EDUMILEX is heterogeneous across countries, with lower values of EDUMILEX required to increase economic performance in developed countries than developing ones.

Suggested Citation

  • Raul Caruso & Anna Balestra, 2022. "Should education and military expenditures be combined for government economic policy?," Economics of Peace and Security Journal, EPS Publishing, vol. 17(1), pages 37-54, April.
    • Handle: RePEc:epc:journl:v:17:y:2022:i:1:p:37-54
    DOI: 10.15355/epsj.17.1.37
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    File URL: https://www.epsjournal.org.uk/index.php/EPSJ/article/view/368
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    Cited by:

    1. Anna Balestra & Raul Caruso, 2024. "Education and Military Expenditures: Countervailing Forces in Designing Economic Policy. A Contribution to the Empirics of Peace," DISCE - Quaderni del Dipartimento di Politica Economica dipe0035, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).

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    More about this item

    Keywords

    Peace; Education; Military Expenditures; Economic Growth; Development;
    All these keywords.

    JEL classification:

    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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