MILITARY SPENDING AND GROWTH: A SMALL OPEN ECONOMY STOCHASTIC GROWTH MODEL

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Please use this identifier to cite or link to this item: https://irlib.pccu.edu.tw/handle/987654321/32168

Title:	MILITARY SPENDING AND GROWTH: A SMALL OPEN ECONOMY STOCHASTIC GROWTH MODEL
Authors:	Lee, Shin-Chyang Lee, Cheng-Te Wu, Shang-Fen
Contributors:	國貿系
Keywords:	Military spending Stochastic growth Small open economy
Date:	2016-01-02
Issue Date:	2016-03-16 14:53:21 (UTC+8)
Abstract:	The paper analyzes the effects of military spending on economic growth in a small open stochastic endogenous growth model involving the supply-side and demand-side effects produced by military spending. We show that a rise in the military spending affects economic growth through four channels, including the crowding-out effect, the spin-off effect, the resource mobilization effect, and the portfolio effect. The net effect which depends on these four channels is ambiguous. Hence, we demonstrate that there exists an optimal defense burden that maximizes the economic growth rate.
Relation:	DEFENCE AND PEACE ECONOMICS 卷: 27 期: 1 頁碼: 105-116
Appears in Collections:	[Department of International Trade 7 Graduate Institute of International Trade ] periodical articles

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