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Time-series Estimates of the Macroeconomic Impact of Defence Spending in France and the UK

Author

Listed:
  • Stephen Martin

    (Birkbeck College [University of London])

  • Ron Smith

    (Birkbeck College [University of London])

  • Jacques Fontanel

    (CESICE - Centre d'études sur la sécurité internationale et les coopérations européennes - UPMF - Université Pierre Mendès France - Grenoble 2 - IEPG - Sciences Po Grenoble - Institut d'études politiques de Grenoble)

Abstract

Measures of the effect of military expenditure on the economy had tended to rely input-output or international cross-section models than rather time-series estimates. We estimate the effect of military expenditure on investment, employment and growth on France and UK. The main results suggest that military expenditure tends to reduce investment and increase unemployment. It has a positive immediate effect on growth, but when the system feedbacks are taken into account the net effect is negative.

Suggested Citation

  • Stephen Martin & Ron Smith & Jacques Fontanel, 1987. "Time-series Estimates of the Macroeconomic Impact of Defence Spending in France and the UK," Post-Print hal-02937438, HAL.
    • Handle: RePEc:hal:journl:hal-02937438
    DOI: 10.1007/978-1-349-18898-7_16
    Note: View the original document on HAL open archive server: https://hal.univ-grenoble-alpes.fr/hal-02937438
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    References listed on IDEAS

    as
    1. Smith, Ron P, 1978. "Military Expenditure and Capitalism: A Reply," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 2(3), pages 299-304, September.
    2. Dunne, J P & Smith, R P, 1984. "The Economic Consequences of Reduced UK Military Expenditure," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 8(3), pages 297-310, September.
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    Citations

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    Cited by:

    1. Jacques Fontanel, 1991. "The economic significance of military expenditure and the economic impact of disarmament," Working Papers hal-02960094, HAL.
    2. Jacques Fontanel, 1995. "Méthodes et hypothèses d'analyse économique du désarmement et de ses effets sur les économies nationales," Post-Print hal-03335870, HAL.
    3. Julien Malizard, 2014. "Dépenses militaires et croissance économique dans un contexte non linéaire. Le cas français," Revue économique, Presses de Sciences-Po, vol. 65(3), pages 601-618.
    4. Jacques Fontanel, 1997. "Désarmement pour le développement Un pari risqué sur la sagesse des hommes et de leurs institutions," Post-Print hal-03659101, HAL.
    5. Julien Malizard, 2010. "Causality Between Economic Growth and Military Expenditure: The Case of France," Defense & Security Analysis, Taylor & Francis Journals, vol. 26(4), pages 401-413, December.
    6. Julien Malizard, 2013. "Opportunity Cost Of Defense: An Evaluation In The Case Of France," Defence and Peace Economics, Taylor & Francis Journals, vol. 24(3), pages 247-259, June.
    7. Jacques Fontanel & Jean-Paul Hébert, 1991. "French public defence expenditure and procurement policy," Working Papers hal-03207447, HAL.
    8. Jacques Fontanel, 1995. "Les dépenses militaires, variables expliquées ou explicatives des facteurs économiques," Post-Print hal-03334658, HAL.
    9. Jacques Fontanel, 1995. "La recherche des économistes en faveur de la paix," Post-Print hal-03547704, HAL.
    10. Jacques Fontanel, 1994. "Les économistes face aux questions de sécurité et de défense," Post-Print hal-03219575, HAL.
    11. Jacques Fontanel, 2019. "The military budget, a less and less significant indicator of the useful national defense effort," Working Papers hal-02422300, HAL.
    12. Jacques Fontanel & Hans-Christian Cars & Jacques Aben & Ron Smith & Pete Mir, 1987. "Emploi et défense," Post-Print hal-02961942, HAL.
    13. Jacques Fontanel, 1995. "Introduction à l’analyse économique des dépenses militaires," Post-Print hal-03331767, HAL.
    14. Jacques Fontanel, 2007. "Sécurité nationale, dépenses militaires et développement économique," Post-Print hal-03658437, HAL.
    15. Jacques Fontanel, 1987. "La programmation militaire de la France," Post-Print hal-03225756, HAL.
    16. Jacques Fontanel, 1999. "La réduction des dépenses militaires et le désarmement," Post-Print hal-03547256, HAL.
    17. Jacques Fontanel, 1992. "Les dépenses d'armement : fardeau ou bénéfice ?," Post-Print hal-03286814, HAL.
    18. Jacques Fontanel, 1995. "Le désarmement pour le développement," Post-Print hal-03328523, HAL.
    19. Jacques Fontanel, 1990. "L'économie du désarmement," Post-Print hal-02951143, HAL.

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