ON THE RELATIONSHIP BETWEEN MILITARY EXPENDITURE, THREAT, AND ECONOMIC GROWTH: A NONLINEAR APPROACH

@inproceedings{Yang2011ONTR,
  title={ON THE RELATIONSHIP BETWEEN MILITARY EXPENDITURE, THREAT, AND ECONOMIC GROWTH: A NONLINEAR APPROACH},
  author={Albert Jing-Fuh Yang and William N. Trumbull and Chin W. Yang and Bwo-Nung Huang},
  year={2011}
}
The main objective of the paper is to decipher the military expenditure--economic growth relationship, taking the level of economic development (income) into consideration. Our findings suggest the following: (i) military expenditure has a significantly negative relationship to economic growth for the 23 countries with initial incomes (threshold variable) less than or equal to $475.93; (ii) when the threat level is heightened, economic growth (23 countries) is expected to decrease. However… CONTINUE READING