The Relationship between Military Expenditure, Military Personnel, Economic Growth, and the Environment
Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 33090
The Relationship between Military Expenditure, Military Personnel, Economic Growth, and the Environment

Authors: El Harbi Sana, Ben Afia Neila

Abstract:

In this paper, we study the relationship between the military effort and pollution. A distinction is drawn between the direct and indirect impact of the military effort (military expenditure and military personnel) on pollution, which operates through the impact of military effort on per capita income and the resultant impact of income on pollution. Using the data of 121 countries covering the period 1980–2011, both the direct and indirect impacts of military effort on air pollution emissions are estimated. Our results show that the military effort is estimated to have a positive direct impact on per capita emissions. Indirect effects are found to be positive, the total effect of military effort on emissions is positive for all countries.

Keywords: Military expenditure, military personnel, income, emissions of CO2 and panel data.

Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1112109

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 1968

References:


[1] Abu-Bader, S and Abu-Qarn A.S, ‘Government Expenditures, Military Spending and Economic Growth: Causality Evidence from Egypt, Israel and Syria’ Policy Modeling 25 (2003):567-583.
[2] Ang, James. B, ‘What are the mechanisms linking financial development and economic growth in Malaysia’ Economic Modelling25(2008):38-53.
[3] Annicchiarico, B; Bennato, A. R and A. Costa, ‘Economic Growth and Carbon Dioxide Emissions in Italy, 1861-2003’, University Library of Munich, Germany, http://mpra.ub.uni-muenchen.de/12817/ MPRA Paper No. 12817, posted 17. January (2009) 19:46 UTC.
[4] Azomahou, T.; Laisney, F and Van Phu, N. ‘Economic Development and CO2 emissions: a nonparametric panel approach’ Journal of Public Economics90(2006):1347-1363.
[5] Azomahou, T and Nguyen, V. Ph, ‘Economic growth and CO2 emissions: A non-parametric approach’, CORE Discussion Papers Series No.2001012, Université Catholique de Louvain, Center for Operations Research and Econometrics (CORE) (2001).
[6] Benoit, E, Defense Spending and Economic Growth in Developing Countries, Lexington: Lexington Books (1973).
[7] Benoit, E., ‘Growth and Defense Spending in Developing Countries’, Economic Development and Cultural Change, 26 (1978):271-280.
[8] Birdi, A and Dunne, P, ‘An Econometric Analysis of Military Spending and Economic Growth in South Africa’, Middlesex University Business School (2001).
[9] Biswas, B. and Ram, R. ‘Military Expenditures and Economic Growth in Less Developed Countries: An Augmented Model and Further Evidence’, Economic Development and Cultural Change34(1986) :361–372.
[10] Cole, MA. ‘Trade, the pollution haven hypothesis and the environmental Kuznets curve: examining the linkages’, Ecological Economics 48(2004): 71-81.
[11] Cole, MA. ‘Corruption, Income and the Environment: An Empirical Analysis’ Ecological Economics9(2007):637-647.
[12] Dasgupta, S; Laplante, B;Wang, H and Wheeler, D. ‘Confronting the environmental Kuznets curve’, Economic Perspectives16(2002) :147-168.
[13] Deger, S and Sen S. ‘Military Expenditure, Spin-off and Economic Development’, Development Economics, 13(1983):67-83.
[14] Dimitrakiand, O and Menla Ali, F. ‘The Long-run Causal Relationship Between Military Expenditure and Economic Growth in China’, Defence and Peace Economics26(2015): 311-326.
[15] Dinda, S. ‘Environmental Kuznets curve hypothesis: a survey, ‘ecological Economics, 49(2004):431–455.
[16] Dunne, J.P. ‘Military Spending and Economic Growth in Sub Saharan Africa’ School of Economics, University of the West of England, Bristol BS16 1QY, UK and SALDRU, University of Cape Town (2010).
[17] Fiani, R; Annez, P and Taylor, L. ‘Defense Spending, Economic Structure and Growth: Evidence among Countries and Over Time’, Economic Development and Cultural Change32(1984):487-498.
[18] Grossman, G.M and Krueger, A.B. ‘Environmental Impacts of North American Free Trade Agreement’, Working Paper Series No. 3914, national Bureau of Economic Research, USA (1991).
[19] Leontief, W and Duchin, F. ‘Military Spending: Facts and Figures, Worldwide Implications and Future Outlook’, New York: Oxford University Press (1983).
[20] Levine, R and Renelt, D. ‘A sensitivity analysis of cross-country growth regressions’ American Economic Review 82(1992):942 -963.
[21] Levine, R and Zervos, S. J. ‘What we have learned about policy and growth from cross-country regressions?’, American Economic Review Papers and Proceedings83(1993) :426- 430
[22] Magnani, E and Tubb, A. ‘The Link Between Economic Growth and Environmental Quality: Does Population Ageing Matter?’, Discussion Paper No. 12, School of Economics, Australia (2007).
[23] Managi, S., ‘Trade Liberalization and the Environment: Carbon Dioxide for 1960-1999’, Economics Bulletin17 (2004): pp.1-5.
[24] Mankiw, N.G, Romer, D. and Weil, D.N. ‘A contribution to the empirics of economic growth’, Quarterly Journal of Economics 107(1992):407-437.
[25] Pieroni, L. ‘Military Spending and Economic Growth’, Working Papers Series No. 0708, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol (2007).
[26] Rothschild, K., ‘Military Expenditure, Export and Growth ’Kyklos, 26(1977):804-813.
[27] Stern, D., ‘The rise and fall of the environmental kuznets curve’, World Development,32(2004):1419-1439.
[28] Welsch, H., ‘Corruption, growth and the environment: a cross-country analysis’, Environment and Development Economics (2004):663–693.