The defense-growth nexus is investigated empirically using time series data for the US and allowing the effect of defense spending on growth to be non-linear. Using recently developed econometric methods involving threshold regressions, evidence of a level-dependent effect of military...

To deserve serious consideration, a strategic defense system must pass four tests: (1) it must be <italic>technically feasible</italic>. (2) It must preserve the <italic>war avoidance stability</italic> of mutual deterrence. (3) It cannot be so expensive that an adversary can cheaply overwhelm it. (4) It must be <italic>politically...</italic>

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...

In theory, the policies associated with adjustment and stabilization (AS) in Latin America were designed to contain wasteful government spending, enhance economic efficiency, and forestall recurrent debt and liquidity crises. In practice, AS succeeded in shrinking the size of government, but...

It is often argued that defence expenditures, and in particular arms imports, are one of the main reasons for the recent increasing trend of Turkey's external debt. This paper empirically examines the relationships between Turkey's defence expenditure and external debt for the period 1979-2000...

The debt crisis that struck South American countries in the 1980s led to severe recession and chronic economic problems. This paper considers one potentially important contributor to the growth of external debt, namely military spending. It considers the experience of Argentina, Brazil and...

Greece has over the years allocated substantial human and material resources to defence. Its defence burden (i.e. military expenditure as a share of GDP) has invariably been substantially higher than the EU and NATO averages. Furthermore, during the post-bipolar period, when the defence budgets...

Arms transfers are financed through a variety of means, including cash payments, barter trade, military aid and credit. The fiscal and economic effects of these various forms of arms transfer financing differ. Data on the flow of arms transfers, as provided by international sources on the arms...