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DEFENCE AND PEACE ECONOMICS VOL: 26 NO 1 (8) answer(s).
 
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ID:   136963


Defense spending, natural resources, and conflict / Ali, Hamid E   Article
Ali, Hamid E Article
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Summary/Abstract This special edition is the product of the 16th Annual International Conference on Economics and Security, held at the American University in Cairo, Egypt, 21–22 June 2012. The conference was organized by the Department of Public Policy and Administration, American University in Cairo, Economists for Peace and Security (Egypt), Economists for Peace and Security (UK), Economists for Peace and Security (US), and the School of Global Affairs at the American University in Cairo. The conference addressed a trajectory of current issues pertaining to the region and across the globe, ranging from applied to theoretical. The conference participants are policy scientists and researchers from different academic institutions and parts of the world, including Egypt, the UK, Greece, the USA, Sweden, China, Turkey, Italy, Germany, South Africa, the Netherlands, Portugal, Switzerland, and Spain.
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2
ID:   136966


Does military spending crowd out social welfare expenditures: evidence from a panel of OECD countries / Lin, Eric S; Ali, Hamid E; Lu, Yu-Lung   Article
Lin, Eric S Article
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Summary/Abstract This article examines the relationship between defense and social welfare expenditures using a panel of 29 OECD countries from 1988 to 2005. It is quite difficult to take into account the simultaneous channels empirically through which the eventual allocation of defense and welfare spending is determined for the guns-and-butter argument. Taking advantage of our collected panel data-set, the panel generalized method of moments method is adopted to control the country-specific heterogeneity and to mitigate the potential simultaneity problem. The main finding of this article suggests a positive trade-off between military spending and two types of social welfare expenditures (i.e. education and health spending). One of the reasons may be that the OECD countries are more supportive of the social welfare programs; therefore, when the military spending is increased (e.g. military personnel and conscripts), the government may raise the health and education spending as well.
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3
ID:   136965


Military expenditure, economic growth and heterogeneity / Dunne, J. Paul; Tian, Nan   Article
Dunne, J. Paul Article
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Summary/Abstract This paper examines the impact of military expenditure on economic growth on a large balanced panel, using an exogenous growth model and dynamic panel data methods for 106 countries over the period 1988–2010. A major focus of the paper is to consider the possibility group heterogeneity and non-linearity. Having estimated the model for all of the countries in the panel and finding that military burden has a negative effect on growth in the short and long run, the panel is broken down into various groupings based upon a range of potentially relevant factors, and the robustness of the results is evaluated. The factors considered are different levels of income, conflict experience, natural resources abundance, openness and aid. The estimates for the different groups are remarkably consistent with those for the whole panel, providing strong support for the argument that military spending has adverse effects on growth. There are, however, some intriguing results that suggest that for certain types of countries military spending has no significant effect on growth.
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4
ID:   136964


Military expenditures and natural resources: evidence from rentier states in the Middle East and North Africa / Ali, Hamid E; Abdellatif, Omnia A   Article
Ali, Hamid E Article
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Summary/Abstract This paper examines the impact of military expenditure on economic growth on a large balanced panel, using an exogenous growth model and dynamic panel data methods for 106 countries over the period 1988–2010. A major focus of the paper is to consider the possibility group heterogeneity and non-linearity. Having estimated the model for all of the countries in the panel and finding that military burden has a negative effect on growth in the short and long run, the panel is broken down into various groupings based upon a range of potentially relevant factors, and the robustness of the results is evaluated. The factors considered are different levels of income, conflict experience, natural resources abundance, openness and aid. The estimates for the different groups are remarkably consistent with those for the whole panel, providing strong support for the argument that military spending has adverse effects on growth. There are, however, some intriguing results that suggest that for certain types of countries military spending has no significant effect on growth.
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5
ID:   136967


Military expenditures, income inequality, welfare and political regimes: a dynamic panel data analysis / Tongur, Unal; Elveren, Adem Y   Article
Elveren, Adem Y Article
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Summary/Abstract The goal of this paper is to investigate the relationship between type of welfare regimes and military expenditures. There is a sizeable empirical literature on the development of the welfare state and on the typology of the welfare regimes. There appear to be, however, no empirical studies that examine welfare regimes with special attention to military spending. This study aims at providing a comprehensive analysis on the topic by considering several different welfare regime typologies. To do so, we use dynamic panel data analysis for 37 countries for the period of 1988–2003 by considering a wide range of control variables such as inequality measures, number of terrorist events, and size of the armed forces. We also replicate the same analyses for the political regimes. Our findings, in line with the literature, show that there is a positive relationship between income inequality and share of military expenditures in the central government budget, and that the number of terrorist events is a significant factor that affects both the level of military expenditure and inequality. Also, the paper reveals a significant negative relationship between social democratic welfare regimes and military expenditures.
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6
ID:   136970


Resource dependence and armed violence: impact on sustainability in developing countries / Carbonnier, Gilles; Wagner, Natascha   Article
Carbonnier, Gilles Article
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Summary/Abstract The dependence on oil, gas, and mineral exports arguably has a negative impact on economic growth in resource-rich, developing countries. This article looks at the impact of resource dependence on adjusted net savings (ANS) as an indicator of weak sustainability. Our results, based on a panel of 104 developing countries during the recent commodity price boom, confirm a negative relationship between resource extraction and sustainable development as measured by ANS. We further look at the specific role of armed conflict and armed violence as captured by the homicide rate. Armed conflict, which is positively associated with resource dependence, negatively affects ANS per capita according to both our OLS and instrumental variables (IV) estimates. Similarly, armed violence has a detrimental effect on sustainable development. Our IV estimate suggests that a one-point increase in the homicide rate decreases ANS per capita by $60. Since education expenditures are a critical ANS component, we further examine the impact of resource dependence and violence on human capital. Consistent with previous findings, resource-dependent countries underinvest in education but armed conflict and violence do not affect the instantaneous share of education expenditures, hinting at a detrimental effect working through physical and social capital rather than education.
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7
ID:   136969


Resource rents, institutions, and violent civil conflicts / Elbadawi, Ibrahim Ahmed; Soto, Raimundo   Article
Elbadawi, Ibrahim Ahmed Article
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Summary/Abstract Natural resources have been blamed for inducing slow growth and sparking civil conflicts and violence. This paper first develops a model to account for the hazard of armed civil conflicts as a manifestation of the natural resource curse, which is mediated by the quality of both economic and political institutions. We then use recently published data on institutional quality and natural resource rents to measure the potential impact of the resource curse on violent civil conflicts using a panel of data for over 100 countries in the period 1970–2010. Our model explicitly accounts for the role of good economic and political institutions in deterring the recourse to violence as well as the extent to which they might weaken the resource rents effect.
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8
ID:   136968


Shifting determinants of defense spending preferences between 1980 and 2008 / Ecer, Sencer; Veasey, Nicholas J   Article
Ecer, Sencer Article
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Summary/Abstract This paper analyzes defense spending preferences using ordered logit regression analysis of American National Election Survey data from 1980 through 2008. Our results indicate that as opposed to having the ideology of isolationism, political party identification towards the Republican Party or having economic stakes in defense spending always play a significant role in increased preference towards defense spending. Demographic groups such as Native Americans, Hispanics, and retired women, a demographic subgroup, display generally positive preferences towards defense spending. Somewhat surprisingly, another demographic subgroup, ‘security moms,’ do not show a preference. Our analysis also displays lower (higher) preference in the early 1990s (2000s) for defense spending compared to the year 2008.
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