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An empirical study of the spin-off effects of military spending

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  • Trish Kelly
  • Meenakshi Rishi

Abstract

The article explores the spin-off effect controversy surrounding the role of military spending in economic development by investigating its impact on output in six industries linked to the military. The article's econometric investigation does not support the case for spin-off effects. The results suggest that military spending's direct impact on output in each industry is negative or insignificant depending on whether adjustments for trade in armaments are made. The results also fail to substantiate physical and human capital spin-off effects. Based on these results, the article concludes that the case for spin-off effects has been exaggerated.

Suggested Citation

  • Trish Kelly & Meenakshi Rishi, 2003. "An empirical study of the spin-off effects of military spending," Defence and Peace Economics, Taylor & Francis Journals, vol. 14(1), pages 1-17.
    • Handle: RePEc:taf:defpea:v:14:y:2003:i:1:p:1-17
    DOI: 10.1080/10242690302938
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    Cited by:

    1. Antonio Martínez González & Nuria Rueda López, 2013. "A Productivity And Efficiency Analysis Of The Security And Defence Technological And Industrial Base In Spain," Defence and Peace Economics, Taylor & Francis Journals, vol. 24(2), pages 147-171, April.
    2. Antonio Fonfria & Paulina Correa-Burrows, 2010. "Effects Of Military Spending On The Profitability Of Spanish Defence Contractors," Defence and Peace Economics, Taylor & Francis Journals, vol. 21(2), pages 177-192.

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