| ID | 129827 |
| Title Proper | Military spending and economic growth |
| Other Title Information | the case of Iran |
| Language | ENG |
| Author | Farzanegan, Mohammad Reza |
| Publication | 2014. |
| Summary / Abstract (Note) | Over the last decade, the Iranian Government budget on military has been higher than the average of the world. The current increasing international sanctions aim to reduce the military capabilities and capacities of the Iranian Government. We analyze the response of the Iranian economy to shocks in its military budget from 1959 to 2007, using impulse response functions and variance decomposition analysis. The Granger causality results show that there is unidirectional causality from the military spending growth rate to the economic growth rate. The response of income growth to increasing shocks in the military budget is positive and statistically significant. |
| `In' analytical Note | Defence and Peace Economics Vol. 25, No.3; Jun 2014: p.247-269 |
| Journal Source | Defence and Peace Economics Vol. 25, No.3; Jun 2014: p.247-269 |
| Key Words | Military Spending ; Economic Growth ; VAR Model ; Impulse Response ; Sanctions ; Iran |