Work

Spend on what? Insights on military spending efficiency

Year: 2025

Type: article

Abstract: This study investigates the role of military sector efficiency on the economic growth-defence spending relationship in 135 countries from 1992 to 2020. Efficiency stems from capital intensity of the military sector and the existence of technological externalities and economies of scale associated with armaments exports. Our findings indicate that a higher level of efficiency can moderate or eliminate the adverse effects of military burden on economic growth. Introducing alliance participation, we highlight the ‘protective’ role of NATO for its member-states with lower efficiency levels, while SCO seems to be less supportive.

Source: European Journal of Political Economy

DOI: 10.1016/j.ejpoleco.2025.102696

Authors: Dimitrios Dimitriou, Eleftherios Goulas, Christos Kallandranis

Institutions: National and Kapodistrian University of Athens, University of West Attica, University of Patras

Language: English

Topic: Defense, Military, and Policy Studies

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $3,650

OpenAlex ID: W4410466132

FWCI: 6.571

Cites: 66

Cited by: 7

Related to: 10