IDEAS home Printed from https://ideas.repec.org/a/epc/journl/v17y2022i1p37-54.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://www.epsjournal.org.uk/index.php/EPSJ/article/view/368
    Download Restriction: Open access 24 months after original publication.
    File URL: https://libkey.io/10.15355/epsj.17.1.37?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Mikael Lindahl & Alan B. Krueger, 2001. "Education for Growth: Why and for Whom?," Journal of Economic Literature, American Economic Association, vol. 39(4), pages 1101-1136, December.
    2. Giorgio d’Agostino & John Paul Dunne & Luca Pieroni, 2019. "Military Expenditure, Endogeneity and Economic Growth," Defence and Peace Economics, Taylor & Francis Journals, vol. 30(5), pages 509-524, July.
    3. Piero Cipollone & Alfonso Rosolia, 2007. "Social Interactions in High School: Lessons from an Earthquake," American Economic Review, American Economic Association, vol. 97(3), pages 948-965, June.
    4. Baumol, William J., 1996. "Entrepreneurship: Productive, unproductive, and destructive," Journal of Business Venturing, Elsevier, vol. 11(1), pages 3-22, January.
    5. Albalate, Daniel & Bel, Germà & Elias, Ferran, 2012. "Institutional determinants of military spending," Journal of Comparative Economics, Elsevier, vol. 40(2), pages 279-290.
    6. Katarina Keller & Panu Poutvaara & Andreas Wagener, 2009. "Military Draft And Economic Growth In Oecd Countries," Defence and Peace Economics, Taylor & Francis Journals, vol. 20(5), pages 373-393, October.
    7. Daron Acemoglu & Suresh Naidu & Pascual Restrepo & James A. Robinson, 2019. "Democracy Does Cause Growth," Journal of Political Economy, University of Chicago Press, vol. 127(1), pages 47-100.
    8. Ludger Woessmann & Eric Bettinger, 2020. "New Directions in the Economics of Higher Education," Books, Edward Elgar Publishing, number 18408.
    9. Sefa Awaworyi Churchill & Siew Ling Yew, 2018. "The effect of military expenditure on growth: an empirical synthesis," Empirical Economics, Springer, vol. 55(3), pages 1357-1387, November.
    10. Fabio Monteforte & Jonathan R. W. Temple, 2020. "The autocratic gamble: evidence from robust variance tests," Economics of Governance, Springer, vol. 21(4), pages 363-384, December.
    11. Christos Kollias & Suzanna-Maria Paleologou, 2019. "Military spending, economic growth and investment: a disaggregated analysis by income group," Empirical Economics, Springer, vol. 56(3), pages 935-958, March.
    12. Gabriele Marconi, 2018. "Education as a Long†Term Investment: The Decisive Role of Age in the Education†Growth Relationship," Kyklos, Wiley Blackwell, vol. 71(1), pages 132-161, February.
    13. J. Paul Dunne & Nan Tian, 2015. "Military Expenditure, Economic Growth and Heterogeneity," Defence and Peace Economics, Taylor & Francis Journals, vol. 26(1), pages 15-31, February.
    14. Raul Caruso, 2017. "Peace economics and peaceful economic policies," Economics of Peace and Security Journal, EPS Publishing, vol. 12(2), pages 16-20, October.
    15. J. Paul Dunne & Nan Tian, 2019. "Military Expenditures and Economic Growth," School of Economics Macroeconomic Discussion Paper Series 2019-05, School of Economics, University of Cape Town.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    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).
    2. Raul Caruso, 2015. "Beyond deterrence and decline. Towards a general understanding of peace economics," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 123(1), pages 57-74.
    3. E. Desli & A. Gkoulgkoutsika, 2021. "Military spending and economic growth: a panel data investigation," Economic Change and Restructuring, Springer, vol. 54(3), pages 781-806, August.
    4. Dimitrios Karamanis, 2022. "Defence partnerships, military expenditure, investment, and economic growth: an analysis in PESCO countries," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 173, Hellenic Observatory, LSE.
    5. Charles Shaaba Saba & Nicholas Ngepah, 2019. "Military expenditure and economic growth: evidence from a heterogeneous panel of African countries," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 32(1), pages 3586-3606, January.
    6. Xinyi Wang & Na Hou & Bo Chen, 2023. "Democracy, military expenditure and economic growth: A heterogeneous perspective," Defence and Peace Economics, Taylor & Francis Journals, vol. 34(8), pages 1039-1070, November.
    7. Kollias Christos & Paleologou Suzanna-Maria & Tzeremes Panayiotis, 2020. "Defence Spending and Unemployment in the USA: Disaggregated Analysis by Gender and Age Groups," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 26(2), pages 1-13, May.
    8. Christos Kollias & Panayiotis Tzeremes, 2022. "Militarization, investment, and economic growth 1995–2019," Economics of Peace and Security Journal, EPS Publishing, vol. 17(1), pages 17-29, April.
    9. J. Paul Dunne & Ron P. Smith, 2020. "Military Expenditure, Investment and Growth," Defence and Peace Economics, Taylor & Francis Journals, vol. 31(6), pages 601-614, August.
    10. Kyriakos Emmanouilidis & Christos Karpetis, 2022. "Cross–Country Dependence, Heterogeneity and the Growth Effects of Military Spending," Defence and Peace Economics, Taylor & Francis Journals, vol. 33(7), pages 842-856, October.
    11. Charles Shaaba Saba & Nicholas Ngepah & Christian Nsiah, 2020. "Convergence in military expenditure and economic growth in Africa and its regional economic communities: evidence from a club clustering algorithm," Cogent Economics & Finance, Taylor & Francis Journals, vol. 8(1), pages 1832344-183, January.
    12. Saba Charles Shaaba & Ngepah Nicholas, 2020. "Military expenditure and security outcome convergence in African regional economic communities: evidence from the convergence club algorithm," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 26(1), pages 1-28, February.
    13. Antonella Biscione & Raul Caruso, 2021. "Military Expenditures and Income Inequality Evidence from a Panel of Transition Countries (1990-2015)," Defence and Peace Economics, Taylor & Francis Journals, vol. 32(1), pages 46-67, January.
    14. Giorgio d’Agostino & J. Paul Dunne & Luca Pieroni, 2017. "Does Military Spending Matter for Long-run Growth?," Defence and Peace Economics, Taylor & Francis Journals, vol. 28(4), pages 429-436, July.
    15. Ünal Töngür & Adem Yavuz Elveren, 2017. "The nexus of economic growth, military expenditures, and income inequality," Quality & Quantity: International Journal of Methodology, Springer, vol. 51(4), pages 1821-1842, July.
    16. J. Paul Dunne & Christine S. Makanza, 2019. "Nonlinear Effects of Military Spending on Economic Growth in Sub-Saharan Africa," School of Economics Macroeconomic Discussion Paper Series 2019-04, School of Economics, University of Cape Town.
    17. E. Desli & A. Gkoulgkoutsika & C. Katrakilidis, 2017. "Investigating the Dynamic Interaction between Military Spending and Economic Growth," Review of Development Economics, Wiley Blackwell, vol. 21(3), pages 511-526, August.
    18. Charles Shaaba Saba & Nicholas Ngepah, 2022. "Nexus between defence spending, economic growth and development: evidence from a disaggregated panel data analysis," Economic Change and Restructuring, Springer, vol. 55(1), pages 109-151, February.
    19. Isiaka Akande Raifu & Alarudeen Aminu, 2023. "The effect of military spending on economic growth in MENA: evidence from method of moments quantile regression," Future Business Journal, Springer, vol. 9(1), pages 1-21, December.
    20. Lukasz Wiktor Olejnik, 2023. "Economic growth and military expenditure in the countries on NATOʼs Eastern flank in 1999–2021," Bank of Estonia Working Papers wp2023-2, Bank of Estonia, revised 09 May 2023.

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:epc:journl:v:17:y:2022:i:1:p:37-54. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Michael Brown, Managing Editor, EPSJ (email available below). General contact details of provider: https://edirc.repec.org/data/ecaarea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.