Military Expenditure and Growth in Conflict: An Instrumental Approach

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Abstract/Contents

Abstract: The study of the relationship between military expenditure and economic growth contains a large history of contradictory results. While the literature includes many different samples of countries of different income groups, threat levels, and government spending decisions, none incorporate the presence of civil conflict into the relationship. Using an over-identified instrumental variable of U.S. military foreign aid to developing countries from 1990-2014, this study investigates how civil conflict affects the relationship between military expenditure and economic growth in developing countries. While military expenditure alone yields insignificant results, the presence of civil conflict creates a negative relationship between military spending and GDP growth rate.

Type of resource	text
Date created	May 2017

Author	Sandino, Rosemarie
Primary advisor	Bloom, Nicholas
Degree granting institution	Stanford University, Department of Economics

Subject	Military Expenditure
Subject	Civil Conflict
Subject	Foreign Aid
Subject	Instrumental Variable
Subject	Stanford Department of Economics
Genre	Thesis

Location	https://purl.stanford.edu/by872cn2884

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Preferred Citation: Sandino, Rosemarie. (2017). Military Expenditure and Growth in Conflict: An Instrumental Approach. Stanford Digital Repository. Available at: https://purl.stanford.edu/by872cn2884

Stanford University, Department of Economics, Honors Theses

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