Department of Defense expenditures impact on state economic growth.
James, Craig E.
Mehay, Stephen L.
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Utilizing pooled cross-sectional and time series data an econoretric model is used to estimate the irtpact defense expenditures had on state econonic growth between 1976 and 1985. Defense contracts for procurement, research and development , services, and construction were found to have a significant positive effect on state growth during this period. However, defense expenditures for civilian payrolls were found to have had a significant adverse effect on growth and expenditures on military payrolls were found to be insignificantly related to state growth.
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