Budgetary Impacts of Third World Arms Production
Abstract
One of the more intriguing empirical
findings in recent years is evidence that a
number of Third World economies experience a
positive relationship between military
expenditures and overall rates of economic
growth. While this result has been found in
a number of individual studies, no
satisfactory explanation has been put forth
-- presumably defense expenditures have both
positive spin-offs, tending to support
growth, and a number of negative aspects such
a crowding out of private sector investment
which tend to reduce overall growth. It is
something of a tautology therefore to argue
that those countries experiencing net
positive benefits from defense expenditure
simply have an environment where the net
positive effects predominate. The purpose of
this paper is to show that Third World arms
producers differ considerably in terms of
budgetary priorities from their non producer
counterparts. More importantly it can be
demonstrated that differences in budgetary
priorities between these two groups of
countries is consistent with the fact that
arms producers tend to obtain net positive
benefits from military expenditures while
non-producers find their overall rates of
growth declining with increased allocations
to defense.
Description
International Journal of Public Administration, vol. 11, no. 5, 1988.
Refereed Journal Article
Rights
This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.Collections
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