Military Expenditures, External Threats and Economic Growth
Ari Francisco de Araujo Junior Cláudio D. Shikida – Ibmec Minas Ibmec Minas

Abstract

Do military expenditures have impact on growth? Aizenman Glick (2006) found that this impact is positive in countries with good governance, where the external threat is significant. Our article shows that their results suffer from three limitations: (i) they are not robust to the most recent main database used; (ii) small changes in the time period of some variables change their results, and (iii) the authors’ econometric specification is not adequate to their hypothesis. Using a 2SLS specification we reconfirm the authors’ hypothesis.

Onde? No Economics Bulletin. Trata-se, aliás, do primeiro segundo artigo de professores das Faculdades IBMEC-MG em inglês publicado no exterior. O primeiro é do Ari com André Golger, em Papeles de Población  (no prelo).