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Military expenditure and debt in small industrialised economies: A panel analysis

Author

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  • J. Paul Dunne †
  • Sam Perlo-Freeman ‡
  • Aylin Soydan §
Abstract
This paper considers the impact of military spending on debt in a panel of 11 small industrialising economies using panel data methods. It provide estimates for fixed effects and random effects models and then moves on to consider dynamic models. The dynamics are found to be important and the results suggest that military burden does indeed have a positive impact on the share of external debt in GDP.

Suggested Citation

  • J. Paul Dunne † & Sam Perlo-Freeman ‡ & Aylin Soydan §, 2004. "Military expenditure and debt in small industrialised economies: A panel analysis," Defence and Peace Economics, Taylor & Francis Journals, vol. 15(2), pages 125-132, April.
    • Handle: RePEc:taf:defpea:v:15:y:2004:i:2:p:125-132
    DOI: 10.1080/1024269032000110504
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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