Military Expenditures and Economic Growth

✍ Scribed by Jasen Castillo

• Publisher: Rand Publishing
• Year: 2001
• Tongue: English
• Leaves: 126
• Category: Library

✦ Synopsis

This study explores the historical relationship between economic growth and military expenditures in five great power countries: Germany, France, Russia, Japan, and the United States. Using statistical and case-study methodologies, the authors examine how each country's military expenditures responded to increases in economic output levels and in economic growth during the period 1870-1939, and they offer explanations for the relationship in each country. If historical experience holds true, economic growth in some of the present-day candidates for great-power status will spur them to increase the growth rate of their military expenditures and, as a result, their military capabilities. But each country is unique, and strong economic growth need not imply a commensurate expansion of military spending or capability. History suggests that preceived threats from abroad may be the most important factor leading potential great powers to increase military expenditures.

✦ Table of Contents

Preface......Page 1
Figures......Page 3
Tables......Page 5
Summary......Page 7
1. DEFINING THE PROBLEM......Page 11
2. A BRIEF REVIEW OF THE STATISTICAL LITERATURE......Page 15
3. EMPIRICAL DETERMINATION OF THE GROWTHłMILITARY EXPENDITURES RELATIONSHIP......Page 21
4. ALTERNATIVE HYPOTHESES ABOUT THE GROWTHłMILITARY EXPENDITURES RELATIONSHIP......Page 59
5. HISTORICAL CASE STUDIES OF THE ALTERNATIVE HYPOTHESES......Page 73
6. SHOULD THE UNITED STATES WORRY ABOUT LARGE, FAST-GROWING ECONOMIES?......Page 105
Bibliography......Page 115