The Policy Relevance of Recent Research on the Economics of Third World Military Expenditures

Abstract

Until the early 1970s, third world policy makers received clear guidance from economists: the production (or purchase) of more guns must come at the sacrifice of butter. This all changed with the 1973 publication of Emile Benoit's seminal work. Benoit's analysis was the first quantitative assessment of the manner in which third world defense expenditures affect overall rates of economic growth. Needless to say, his counter-intuitive finding that defense expenditures do not necessarily hinder or help growth stimulated a deluge of critical, follow on papers.