This paper investigates how long it takes a country to regain international tourism attractiveness after an armed conflict using gravity panel data. This includes examining the influence of security ...spending as proxied by military spending in the underlying negative relationship between international tourism and armed conflict. The results show that security spending cannot reverse the negative impact of armed conflict on international tourist flows in a destination country in a short period of time. Security spending, however, can reverse the negative impact of conflict after about eight years following the onset of the conflict as international tourist flows increase. Armed conflict is very costly and should be avoided by all means possible. In the event of an unavoidable conflict, effective utilization of security spending can help to restore peace after some time, which in turn would lead to an increase in international tourist flows.
This research endeavors to demonstrate how military spending contributes to increased peace, protection, security, and the safety of a nation’s population. War, however, reveals dishonesty in ...peacetime with terrible clarity. The Russian invasion of Ukraine in 2022, accompanied by a rise in defense budgets, could offer impetus for reorganizing collaborative defense programs. The risks to Europe must be identified and articulated in order to justify increased defense spending. In retrospect, the conventional danger posed by Russia appears less formidable than previously believed, but the job of restoring depleted capabilities is tremendous. Thus, the European defense policy affords chances to spend more and more effectively - these must be properly reevaluated. The policy has garnered tremendous public interest but has yielded minimal results. It has been robust in terms of rhetoric, but weak in terms of actual military and resource commitments. This essay provides a critical economic analysis of European defense policy. It identifies the policy issue, the economics of the issue, future opportunities, and obstacles to obtaining more and improved spending. The objective is to demonstrate how economic analysis may be applied to the intricacies of European defense policy. Economic efficiency criteria indicate the role of end outputs, substitution, and competition to the design of European defense policy, although military-political considerations are more likely to affect the ultimate outcomes than economic efficiency criteria.
Security is a form of guarantee that needs to be given by the state to its citizens. This fulfillment can be realized through the provision of national defense for all citizens. Nevertheless, ...military expenditure as a source of providing national defense needs attention. This is caused by its unproductive nature when compared to other sectors such as agriculture, banking, industry, and others. This study aims to analyze the effect of Military Expenditures on the level of Economic Growth. Furthermore, this study also analyzes the effect of interactions between Military Expenditure with other variables such as Population, Foreign Direct Investment (FDI), Political Stability, and Rule of Law, to see their indirect effects on Economic Growth. This study uses secondary data and covering 27 selected Lower-Middle Income Countries from 2002-2018. Furthermore, this study uses dynamic panel data analysis with the System Generalized Method of Moments (GMM) method. The Military Expenditure in this study does not significantly influence Economic Growth. However, it was found that Military Expenditure had a positive and significant influence on Economic Growth when interacting with other variables.
Abstract The US leads the global economy regarding foreign trade volume and military expenditures. Increases in military expenditures and foreign trade can substantially affect environmental issues. ...This study's preliminary research objective is to explore the interaction of foreign trade and military expenditures with ecological concerns in the long-term of the US economy using current time series techniques. Ecological footprint, military expenditures, exports, imports, urbanization, and agricultural area variables are used in the analysis with annual data for the US economy for the period 1970-2018. A relationship in long-term between the variables is revealed by the Maki (2012) cointegration test results, considering structural break. As indicated by the findings obtained from the coefficient estimation, an increase in military expenditures, exports, and agricultural area decreases the ecological footprint, while an increase in imports increases it. In addition, the results of the time-varying causality test show that there are periodic causality relationships between the variables. To sum up, there is a negative relationship between military expenditures, exports, and agricultural area, and ecological footprint, and a positive relationship between imports and ecological footprint.
•Insights into the guns and butter phenomena of Pakistan is provided.•Quantile Autoregressive Distributive Lag model is applied to capture all asymmetries at the same time.•Military expenditure shows ...negative impact on human development and economic growth.•Urbanization and food deficit shows positive effect on economic growth.•Policy implications for policymakers are provided.
The so-called ‘guns and butter’ phenomenon reflects that Pakistan is experiencing a difficult choice to improve defense and welfare sector to achieve sustainable economic growth. However, results remain controversial. Therefore, this paper attempts to explore the long and short-term associations among military expenditure, human development, and economic growth as informed by both urbanization and food deficit from 1965 to 2016. This study applies a newly-developed econometric model of Quantile Autoregressive Distributive Lag that not only takes asymmetries into account but also captures all conditions simultaneously. Our findings indicate that military expenditure has a negative impact on human development and economic growth, while urbanization and food deficit have a positive effect on it. We also confirm this long and short-run equilibrium by applying the Wald test. Possible economic policy implications - such as improving the quality and quantity of education, a true implementation of the National Rural Support Program, and improving gender equity in the Pakistani economy - are also discussed.
Meta analysis is conducted to review 32 empirical studies with 169 estimates of the effect of military expenditure on economic growth. We formulate four hypotheses to examine the empirical evidence ...and to provide overall conclusions while controlling for systematic heterogeneity in the studies reviewed. The hypotheses are: (H1) Military expenditure reduces economic growth; (H2) Military expenditure is detrimental to economic growth in less developed countries (LDCs); (H3) The effect of military expenditure on economic growth is positive and (H4) The effect of military expenditure on economic growth is non-linear. We find that the hypothesis of a negative military expenditure–growth relationship is not supported for both LDCs and in general, while a positive effect of military expenditure on economic growth is supported for developed countries. The hypothesis of a non-linear military expenditure–growth relationship is confirmed. The main sources of study-to-study variation in the findings of military expenditure and economic growth literature are attributable to the sample, time periods, and functional forms.
► The effect of military expenditure on economic growth is practically insignificant. ► The military expenditure–growth nexus is non-linear. ► Data and time-periods also contribute to the variations in the findings. ► The effect of military expenditure on growth is insignificant for LDC. ► The effect of military expenditure on growth is positive for developed countries.
The need to attain lower carbon dioxide emissions has become a topical issue in recent times. The effect of a number of economic variables on carbon dioxide emissions has been empirically assessed. ...Rising government expenditure, industrialization, and militarization have characterized many developing countries including Ghana. While it is undeniable that such situation has socio-economic importance to offer developing countries, their environmental effects have become a matter of debate among researchers. This study assesses the carbon dioxide emissions effect of industrialization, government expenditure, and militarization in Ghana. Based on the Stochastic Impacts by Regression on Population, Affluence, and Technology (STIRPAT) framework, the study models Ghana’s carbon emission as a function of income, population, industrialization, government expenditure, and military expenditure. Time series data over the 1971–2018 period was used for investigation. The techniques employed to analyze the data were unit root test, cointegration test, and regression analysis. The autoregressive distributed lag (ARDL) regression approach reveals there is an inverted U-shaped relationship between income and carbon emission confirming the environmental Kuznets curve hypothesis. Also in the long run, carbon emissions are positively influenced by population, industrialization, and militarization but reduced by government expenditure. Similar outcome was obtained in the short run. The paper concludes that the level of income, industrialization, militarization, and population matters to deal with carbon dioxide emissions in Ghana. Policy implications of the findings include the urgent need for authorities to promote the use of eco-friendly production methods for military and industrial activities to sustain the economic growth without harming the environment.
This article presents a theoretical model of conflict between two parties in a two-sector economy. In a ‘contested’ sector, they struggle to appropriate the maximum possible fraction of a contestable ...output. In an ‘uncontested’ sector, they hold secure property rights over the production of some goods. Parties split their resource endowment between ‘butter’ and ‘guns’ (in the contested sector) and ‘ice cream’ (in the uncontested sector). The model predicts that the optimal level of ‘guns’ depends positively on the price of ‘butter’ and negatively on the price of ‘ice cream’. Theoretical results are tested by means of a panel analysis of sub-Saharan African countries for the period 1980–2017. The results show that international prices of manufactures (interpreted as the uncontested ice cream sector) are negatively associated with arms imports and military expenditure, so confirming the theoretical prediction. In addition, world prices of some commodities are positively associated with arms imports and military expenditure.
This article presents a study in the non-verbal semiotic discourse analysis of visual ironies of military expenditures in some selected cartoons amid COVID-19 spread. Visual irony can be expressed ...through using humorous or sardonic cartoons or posters with written expressions to express the opposite of what is really going on. Global military expenditure reaches $1917 billion in 2019. Such massive spending on military equipment failed to fight an unseen enemy. This article aims to analyse, from a non-verbal semiotic discourse perspective, some selected cartoons related to military spending amid the rise of COVID-19 pandemic. The selected cartoons are analysed according to Peirce's triadic system of the sign. The analysis of the ironic cartoons related to military spending indicates that governments should reduce spending on military. Instead, they should focus on spending on other crucial humane, economic, and health problems.
Visual irony, semiotics, military expenditure.
This paper employs the mixed frequency vector autoregression (MF-VAR) to discuss the causal link between crude oil dependence and military expenditure in China. The empirical results demonstrate that ...the crude oil dependence Granger causes military expenditure and accounts for 66.8% of the long-run forecast error variance decomposition. That means the MF-VAR model owns stronger explanatory and asymptotic powers than conventional VAR with single frequency data. Besides, the impulse-response analysis finds time varying relationship between crude oil dependence and military expenditure across four quarters within one year period. Therefore, the Chinese People's Liberation Army, especially its Navy, is needed to take responsibility and active activities to assure crude oil transport security. Government, enterprises and institutes should increase investment in military innovation to promote the upgrading of weapons and equipment. The peaceful rise strategy should be reasserted to construct harmonious international relations, which is helpful for crude oil security, foreign energy investment and reduce unnecessary military expenditure.
•Crude oil dependence is raising quickly for China.•The causal link between crude oil dependence and military expenditure is discussed.•The MF-VAF owns better explanatory power than LF-VAR.•The impulse-response finds time-varying relation across different quarters.•Important policy implications are provided for Chinese military strategy.
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