An earlier version of this paper was presented in 1989 atthe Institute for Strategic and International Studies. ; In the last decade increasing attention has been focused on the role of military expenditures in developing countries. One reason for this is that world military expenditures in 1987 exceeded one trillion US dollars for the very first time; developing countries accounted for approximately 17 percent of this total.
This article analizes whether budget allocations to nondefense programs in Argentina between 1961 and 1982 are dependent on the share to defense, the political regime, or both. Multiple regression equations are estimated and include the defense share, two control variables, and political dummies to test for changes in the intercept and slope of the equation as the regimes change
Using a macro-economic model, the authors aim at forecasting economic growth in Argentina, especially its military expenditures. They note that it is extremely hazardous to forecast defence expenditures in developing countries without explicitly taking into account the macro-economic priorities of the government, the policy constraints facing the authorities and the timing of their policy responses
In: World development: the multi-disciplinary international journal devoted to the study and promotion of world development, Band 15, Heft 3, S. 399-404
Refereed Journal Article ; One of the major debates in the literature focuses on whether budget allocations, economic performance, policy outcomes, and the like change significantly with changes in political regimes. To date, there are about an equal number of studies concluding that significant change does take place as there are studies suggesting the opposite. This research has been criticized on two major points.
This study reexamines the relationship between growth and defense spending in developing countries. It differs from previous studies as it recognizes differences in the borrowing capacity of each country. We hypothesize that a negative relationship will exist between defense and economic growth in countries which are financially resource constrained, and a positive relationship will exist in countries which are relatively resource unconstrained. A factor and discriminate analysis are used to group countries. The variables chosen for the factor analysis depict a country's external debt, structural condition, growth, and balance of payments position. Regression equations were estimated for the total sample and each group, with the growth in Gross Domestic Product as the dependent variable. The results confirm the hypothesized positive relationship between defense and growth in the unconstrained group, but was not confirmed for the constrained group. The results suggest the importance of variables such as foreign ex change, net inflows of capital, external debt, and the growth of the public sector in general, on economic growth.
In: Armed forces & society: official journal of the Inter-University Seminar on Armed Forces and Society : an interdisciplinary journal, Band 9, Heft 4, S. 633-645