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Trade-offs Between Defence and Education/Health Expenditures in Developing Countries

Author

Listed:
  • Geoffrey Harris

    (Department of Economics, University of New England)

  • Mark Kelly

    (Department of Economics, University of New England)

  • Pranowo

    (Department of Economics, University of New England)

Abstract

It is commonly believed that defence expenditures have a particular ability to compete government financial resources away from other activities, especially education and health. This article uses a number of methods to test for the existence and strength of such trade-offs in a large number of LDCs. Cross- sectional analysis of government expenditures found that few countries which were low defence spenders were high spenders on education/health (and vice versa). Defence expenditures were no less vulnerable to overall budget cuts, nor more likely to gain from budget increases than education and health. Finally, a longitudinal regression analysis for twelve Asian countries revealed little evidence of trade-offs We discuss some of the reasons why our analysis may not support the conventional view on trade-offs and, finally, make a number of suggestions concerning future research on this topic.

Suggested Citation

  • Geoffrey Harris & Mark Kelly & Pranowo, 1988. "Trade-offs Between Defence and Education/Health Expenditures in Developing Countries," Journal of Peace Research, Peace Research Institute Oslo, vol. 25(2), pages 165-177, June.
  • Handle: RePEc:sae:joupea:v:25:y:1988:i:2:p:165-177
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    Cited by:

    1. Ying Zhang & Xiaoxing Liu & Jiaxin Xu & Rui Wang, 2017. "Does military spending promote social welfare? A comparative analysis of the BRICS and G7 countries," Defence and Peace Economics, Taylor & Francis Journals, vol. 28(6), pages 686-702, November.
    2. Ying Zhang & Xiaoxing Liu & Rui Wang & Ruobing Tang, 2016. "Revisiting the “Guns versus Butter” Argument in China (1950–2014): New Evidence from the Continuous Wavelet Analysis," Sustainability, MDPI, vol. 8(7), pages 1-13, July.
    3. Eric S. Lin & Hamid E. Ali & Yu-Lung Lu, 2015. "Does Military Spending Crowd Out Social Welfare Expenditures? Evidence from a Panel of OECD Countries," Defence and Peace Economics, Taylor & Francis Journals, vol. 26(1), pages 33-48, February.
    4. Jacques Fontanel, 1993. "Hypotheses and methodology for the economic analysis of Disarmament," Working Papers hal-02377396, HAL.

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