| ID | 143602 |
| Title Proper | Military spending and growth |
| Other Title Information | a small open economy stochastic growth model |
| Language | ENG |
| Author | Lee, Shin-Chyang ; Lee, Cheng-Te ; Wu, Shang-Fen |
| Summary / Abstract (Note) | The paper analyzes the effects of military spending on economic growth in a small open stochastic endogenous growth model involving the supply-side and demand-side effects produced by military spending. We show that a rise in the military spending affects economic growth through four channels, including the crowding-out effect, the spin-off effect, the resource mobilization effect, and the portfolio effect. The net effect which depends on these four channels is ambiguous. Hence, we demonstrate that there exists an optimal defense burden that maximizes the economic growth rate. |
| `In' analytical Note | Defence and Peace Economics Vol. 27, No.1; Feb 2016: p.105-116 |
| Journal Source | Defence and Peace Economics Vol: 27 No 1 |
| Key Words | Military Spending ; Small Open Economy ; H56 ; O40 ; Stochastic Growth ; E22 ; F41 |