IDEAS home Printed from https://ideas.repec.org/a/taf/defpea/v18y2007i1p39-52.html
   My bibliography  Save this article

Measuring The Peace Dividend: Evidence From Developing Economies

Author

Listed:
  • Rabia Aslam

Abstract

The paper attempts to trace the nexus between defense spending and economic growth in developing countries, using data for 59 developing countries from 1972-2000. The purpose is to measure the opportunity costs of defense spending mainly in terms of alternative public programs. The correlation of social sector expenditures with growth rate as well as the extent of correlation between social and defense sector spending is not clear in the majority of developing countries. It follows that even if defense spending is reduced, the prospects for a peace dividend in the aftermath of the Cold War might be inhibited by political interests that oppose increases in social sector expenditures. If so, defense cutbacks might not lead to a welfare windfall as is generally presumed. Accordingly, this paper tests whether a defense spending cutback will enhance funding for other public programs and whether such a reallocation of resources will prove to be beneficial for the long-term growth rate of the economy.

Suggested Citation

  • Rabia Aslam, 2007. "Measuring The Peace Dividend: Evidence From Developing Economies," Defence and Peace Economics, Taylor & Francis Journals, vol. 18(1), pages 39-52.
    • Handle: RePEc:taf:defpea:v:18:y:2007:i:1:p:39-52
    DOI: 10.1080/10242690600924620
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/10242690600924620
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/10242690600924620?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 search for a different version of it.

    References listed on IDEAS

    as
    1. Biswas, Basudeb & Ram, Rati, 1986. "Military Expenditures and Economic Growth in Less Developed Countries: An Augmented Model and Further Evidence," Economic Development and Cultural Change, University of Chicago Press, vol. 34(2), pages 361-372, January.
    2. Thomas Scheetz, 2002. "Military Expenditure and Development in Latin America," Palgrave Macmillan Books, in: Jurgen Brauer & J. Paul Dunne (ed.), Arming the South, chapter 3, pages 51-71, Palgrave Macmillan.
    3. Russett, Bruce M., 1969. "Who Pays for Defense? 1," American Political Science Review, Cambridge University Press, vol. 63(2), pages 412-426, June.
    4. Mintz, Alex, 1989. "Guns Versus Butter: A Disaggregated Analysis," American Political Science Review, Cambridge University Press, vol. 83(4), pages 1285-1293, December.
    5. Hollenhorst, Jerry & Ault, Gary, 1971. "An Alternative Answer to: Who Pays for Defense?," American Political Science Review, Cambridge University Press, vol. 65(3), pages 760-763, September.
    6. Ram, Rati, 1986. "Government Size and Economic Growth: A New Framework and Some Evidencefrom Cross-Section and Time-Series Data," American Economic Review, American Economic Association, vol. 76(1), pages 191-203, March.
    7. Geoff Harris, 2002. "Military Expenditure and Economic Development in Asia During the 1990s," Palgrave Macmillan Books, in: Jurgen Brauer & J. Paul Dunne (ed.), Arming the South, chapter 4, pages 71-98, Palgrave Macmillan.
    8. Sandler,Todd & Hartley,Keith, 1995. "The Economics of Defense," Cambridge Books, Cambridge University Press, number 9780521447287, January.
    9. Ward, Michael D. & Davis, David R., 1992. "Sizing up the Peace Dividend: Economic Growth and Military Spending in the United States, 1948–1996," American Political Science Review, Cambridge University Press, vol. 86(3), pages 748-755, September.
    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. Anderton,Charles H. & Carter,John R., 2009. "Principles of Conflict Economics," Cambridge Books, Cambridge University Press, number 9780521875578, December.
    2. Uk Heo & Min Ye, 2016. "Defense Spending and Economic Growth around the Globe: The Direct and Indirect Link," International Interactions, Taylor & Francis Journals, vol. 42(5), pages 774-796, October.
    3. Flávia de Holanda Schmidt Squeff & Lucas Rocha Soares de Assis, 2015. "The Defense Industry in Brazil: Characteristics and Involvement of Supplier Firms," Discussion Papers 0195, Instituto de Pesquisa Econômica Aplicada - IPEA.
    4. Joaquim José Martins Guilhoto & Paulo César Morceiro, Milene Simone Tessarin, 2016. "Productive Complex of Defense and Security in Brazil: dimension, sectoral and technological impacts," Working Papers, Department of Economics 2016_28, University of São Paulo (FEA-USP).
    5. García, Juana & Rettberg, Angelika & Dupont, Federico, 2024. "Unpacking the peace dividend: A subnational analysis of the relationship between business, peace, and economic growth in nine Colombian cities," Business Horizons, Elsevier, vol. 67(6), pages 755-768.
    6. W. Robert J. Alexander, 2015. "The Keynesian IS-MR Model and Military Spending," Defence and Peace Economics, Taylor & Francis Journals, vol. 26(2), pages 213-221, April.

    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. McDonald Bruce D & Eger Robert J, 2010. "The Defense-Growth Relationship: An Economic Investigation into Post-Soviet States," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 16(1), pages 1-28, September.
    2. Alptekin, Aynur & Levine, Paul, 2012. "Military expenditure and economic growth: A meta-analysis," European Journal of Political Economy, Elsevier, vol. 28(4), pages 636-650.
    3. Innocent.U. Duru & Millicent Adanne Eze & Bartholomew.O.N. Okafor & Abubakar Yusuf & Lawrence.O. Ede & Abubakar Sadiq Saleh, 2021. "Military Outlay and Economic Growth: The Scenarios of Lake Chad Basin Countries of the Republic of Chad and Nigeria," Growth, Asian Online Journal Publishing Group, vol. 8(1), pages 12-26.
    4. Tiwari, Aviral & Shahbaz, Muhammad, 2011. "Does Defence Spending Stimulate Economic Growth in India?," MPRA Paper 30880, University Library of Munich, Germany, revised 18 Apr 2011.
    5. Alexamder, W.R. & Hansen, P. Author-Emai, 2004. "A Criritique of the Multi-Sector Model of the Effects of Military Spending on Economic Growth," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 4(2).
    6. Gerhard Reitschuler & Ludger J. Löning, 2004. "Modeling the Defense-Growth Nexus in a Post-Conflict Country - A Piecewise Linear Approach," Ibero America Institute for Econ. Research (IAI) Discussion Papers 097, Ibero-America Institute for Economic Research.
    7. Paula Gómez-Trueba Santamaría & Alfredo Arahuetes García & Tomás Curto González, 2021. "A tale of five stories: Defence spending and economic growth in NATO´s countries," PLOS ONE, Public Library of Science, vol. 16(1), pages 1-22, January.
    8. Uk Heo & Robert J. Eger III, 2005. "Paying for Security," Journal of Conflict Resolution, Peace Science Society (International), vol. 49(5), pages 792-817, October.
    9. Muhammad Shahbaz & Talat Afza & Muhammad Shahbaz Shabbir, 2013. "Does Defence Spending Impede Economic Growth? Cointegration And Causality Analysis For Pakistan," Defence and Peace Economics, Taylor & Francis Journals, vol. 24(2), pages 105-120, April.
    10. Julide Yildirim & Nadir Ocal, 2006. "Arms Race And Economic Growth: The Case Of India And Pakistan," Defence and Peace Economics, Taylor & Francis Journals, vol. 17(1), pages 37-45.
    11. Chang, Hsin-Chen & Huang, Bwo-Nung & Yang, Chin Wei, 2011. "Military expenditure and economic growth across different groups: A dynamic panel Granger-causality approach," Economic Modelling, Elsevier, vol. 28(6), pages 2416-2423.
    12. Reitschuler, Gerhard & Loening, Josef L., 2005. "Modeling the Defense-Growth Nexus in Guatemala," World Development, Elsevier, vol. 33(3), pages 513-526, March.
    13. Jurgen Brauer, 2002. "Survey and Review of the Defense Economics Literature on Greece and Turkey: What Have We Learned?," Defence and Peace Economics, Taylor & Francis Journals, vol. 13(2), pages 85-107.
    14. Julide Yildirim & Selami Sezgin & Nadir Ocal, 2005. "Military Expenditure And Economic Growth In Middle Eastern Countries: A Dynamic Panel Data Analysis," Defence and Peace Economics, Taylor & Francis Journals, vol. 16(4), pages 283-295.
    15. Kimbambu Tsasa Vangu, Jean - Paul, 2012. "Analyse de la Relation Guerres Civiles et Croissance Économique [Civil Wars and Economic Growth in DRC]," MPRA Paper 42424, University Library of Munich, Germany, revised 05 Feb 2012.
    16. Uk Heo, 1998. "Modeling the Defense-Growth Relationship around the Globe," Journal of Conflict Resolution, Peace Science Society (International), vol. 42(5), pages 637-657, October.
    17. José Jurado Sánchez & Juan Ángel Jiménez Martín, 2014. "Guns, Economic Growth and Education during the second half of the Twentieth Century: Was Spain different?," Documentos de Trabajo del ICAE 2014-14, Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales, Instituto Complutense de Análisis Económico.
    18. Ali Hamid E., 2011. "Military Expenditures and Human Development: Guns and Butter Arguments Revisited: A Case Study from Egypt," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 17(1), pages 1-21, September.
    19. Albert J.F. Yang & William N. Trumbull & Chin Wei Yang & Bwo‐Nung Huang, 2011. "On The Relationship Between Military Expenditure, Threat, And Economic Growth: A Nonlinear Approach," Defence and Peace Economics, Taylor & Francis Journals, vol. 22(4), pages 449-457, April.
    20. Odedokun, M. O., 1996. "Alternative econometric approaches for analysing the role of the financial sector in economic growth: Time-series evidence from LDCs," Journal of Development Economics, Elsevier, vol. 50(1), pages 119-146, June.

    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:taf:defpea:v:18:y:2007:i:1:p:39-52. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/GDPE20 .

    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.