IDEAS home Printed from https://ideas.repec.org/a/taf/defpea/v29y2018i4p459-473.html
   My bibliography  Save this article

Economic impact of the ministry of defence’s budget: methodological design and results for the Spanish economy

Author

Listed:
  • José R. García
  • Joaquín Murillo
  • Jordi Suriñach
  • Esther Vayá

Abstract

This article analyses the economic impact of the expenditure budget of the Spanish Ministry of Defence (MoD) and its Autonomous Agencies (AA), distinguishing direct, indirect and induced effects. The input–output methodology is used to find intersectoral effects on the rest of the economy. The article quantifies the economic impact in terms of production, gross value added (GVA), employed population, tax revenue, and also in terms of its contribution to the gross domestic product (GDP) of Spain in 2010. The results show that the activity of the MoD and AA generates 1.2% of the country’s GDP and 1.7% of total employment in that year.

Suggested Citation

  • José R. García & Joaquín Murillo & Jordi Suriñach & Esther Vayá, 2018. "Economic impact of the ministry of defence’s budget: methodological design and results for the Spanish economy," Defence and Peace Economics, Taylor & Francis Journals, vol. 29(4), pages 459-473, June.
    • Handle: RePEc:taf:defpea:v:29:y:2018:i:4:p:459-473
    DOI: 10.1080/10242694.2016.1158439
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/10242694.2016.1158439
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/10242694.2016.1158439?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. Carlos Marti Sempere, 2011. "The European Security Industry. A Research Agenda," Defence and Peace Economics, Taylor & Francis Journals, vol. 22(2), pages 245-264.
    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. repec:zbw:rwirep:0181 is not listed on IDEAS
    4. J. Paul Dunne & Nan Tian, 2013. "Military expenditure and economic growth: A survey," Economics of Peace and Security Journal, EPS Publishing, vol. 8(1), pages 5-11, April.
    5. Mete Feridun & Selami Sezgin, 2008. "Regional Underdevelopment And Terrorism: The Case Of South Eastern Turkey," Defence and Peace Economics, Taylor & Francis Journals, vol. 19(3), pages 225-233.
    6. 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.
    7. Oya Erdogdu, 2008. "Political Decisions, Defense And Growth," Defence and Peace Economics, Taylor & Francis Journals, vol. 19(1), pages 27-35.
    8. Linda Andersson & Johan Lundberg & Magnus Sjostrom, 2007. "Regional Effects Of Military Base Closures: The Case Of Sweden," Defence and Peace Economics, Taylor & Francis Journals, vol. 18(1), pages 87-97.
    9. 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.
    10. Albert Wijeweera & Matthew J. Webb, 2011. "Military Spending and Economic Growth in South Asia: A Panel Data Analysis," Defence and Peace Economics, Taylor & Francis Journals, vol. 22(5), pages 545-554, June.
    11. J. Paul Dunne & Ron Smith & Dirk Willenbockel, 2005. "Models Of Military Expenditure And Growth: A Critical Review," Defence and Peace Economics, Taylor & Francis Journals, vol. 16(6), pages 449-461.
    12. Andy Hultquist & Tricia L. Petras, 2012. "An Examination of the Local Economic Impacts of Military Base Closures," Economic Development Quarterly, , vol. 26(2), pages 151-161, May.
    13. Alfredo Paloyo & Colin Vance & Matthias Vorell, 2010. "The Regional Economic Effects Of Military Base Realignments And Closures In Germany," Defence and Peace Economics, Taylor & Francis Journals, vol. 21(5-6), pages 567-579.
    14. Keith Hartley, 2010. "The Case For Defence," Defence and Peace Economics, Taylor & Francis Journals, vol. 21(5-6), pages 409-426.
    15. Wang, Tung-Pao & Shyu, Stacy Huey-Pyng & Chou, Han-Chung, 2012. "The impact of defense expenditure on economic productivity in OECD countries," Economic Modelling, Elsevier, vol. 29(6), pages 2104-2114.
    16. Mete Feridun & Bansi Sawhney & Muhammad Shahbaz, 2011. "The Impact of Military Spending on Economic Growth: The Case of North Cyprus," Defence and Peace Economics, Taylor & Francis Journals, vol. 22(5), pages 555-562, January.
    17. Thomas Bernauer & Vally Koubi & Fabio Ernst, 2009. "National and Regional Economic Consequences of Swiss Defense Spending," Journal of Peace Research, Peace Research Institute Oslo, vol. 46(4), pages 467-484, July.
    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. Ricardo Ferraz, 2022. "The Portuguese Military Expenditure from a Historical Perspective," Defence and Peace Economics, Taylor & Francis Journals, vol. 33(3), pages 347-365, April.
    2. Ran Tao & Oana Ramona Glonț & Zheng-Zheng Li & Oana Ramona Lobonț & Adina Alexandra Guzun, 2020. "New Evidence for Romania Regarding Dynamic Causality between Military Expenditure and Sustainable Economic Growth," Sustainability, MDPI, vol. 12(12), pages 1-13, June.

    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. 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.
    2. Jun Ando, 2018. "Externality of Defense Expenditure in the United States: A New Analytical Technique to Overcome Multicollinearity," Defence and Peace Economics, Taylor & Francis Journals, vol. 29(7), pages 794-808, November.
    3. Hans Pitlik & Michael Klien & Stefan Schiman-Vukan, 2017. "Stabilitätskonforme Berücksichtigung nachhaltiger öffentlicher Investitionen," WIFO Studies, WIFO, number 60595.
    4. 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.
    5. Andrew Phiri, 2019. "Does Military Spending Nonlinearly Affect Economic Growth in South Africa?," Defence and Peace Economics, Taylor & Francis Journals, vol. 30(4), pages 474-487, June.
    6. 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.
    7. 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.
    8. 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.
    9. 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.
    10. 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.
    11. Olejnik, Łukasz Wiktor, 2023. "Short-run multiplier effects of military expenditures in NATO's Eastern Flank countries in 1999–2021," Journal of Comparative Economics, Elsevier, vol. 51(4), pages 1344-1355.
    12. Alessandra Cepparulo & Paolo Pasimeni, 2024. "Defence Spending in the European Union," European Economy - Discussion Papers 199, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    13. 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.
    14. 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.
    15. Liming Zhao & Liang Zhao & Bing-Fu Chen, 2017. "The interrelationship between defence spending, public expenditures and economic growth: evidence from China," Defence and Peace Economics, Taylor & Francis Journals, vol. 28(6), pages 703-718, November.
    16. Becker Jordan & Kuokštytė Ringailė & Kuokštis Vytautas, 2023. "The Political Economy of Transatlantic Security – A Policy Perspective," The Economists' Voice, De Gruyter, vol. 20(1), pages 55-77, June.
    17. Abdulnasser Hatemi-J & Tsangyao Chang & Wen-Yi Chen & Feng-Li Lin & Rangan Gupta, 2015. "Asymmetric Granger Causality between Military Expenditures and Economic Growth in Top Six Defense Suppliers," Working Papers 201565, University of Pretoria, Department of Economics.
    18. 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.
    19. Kyriakos Emmanouilidis & Christos Karpetis, 2020. "The Defense–Growth Nexus: A Review of Time Series Methods and Empirical Results," Defence and Peace Economics, Taylor & Francis Journals, vol. 31(1), pages 86-104, January.
    20. Christos Kollias & Suzanna-Maria Paleologou, 2016. "Investment, growth, and defense expenditure in the EU15: Revisiting the nexus using SIPRI’s new consistent dataset," Economics of Peace and Security Journal, EPS Publishing, vol. 11(2), pages 28-37, October.

    More about this item

    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:taf:defpea:v:29:y:2018:i:4:p:459-473. 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.