The main aim of this paper is to analyze potential relationship between military expenditure and gross domestic product. Data used for this analysis are mostly collected from Stockholm International Peace Research Institute (SIPRI) websites. The first part of this paper examines basic definitions of military expenditure represented by well-known international organizations like NATO, OSN or IMF. Then there is considerable debate in society over the effects of military expenditure on economic growth, especially in developing countries. That is why the next part of this article examines the potential influence of military spending on economic growth. Regression analysis in the last part tries to estimate the relationship among two variables. It is possible to say that military expenditures have many definitions. It is said that military spending represents the economic or financial burden of each country. There is quite a big difficulty related to its delimitation because every single country can characterize military expenditure according to their needs. There will be consequently significant discrepancy, if we take the world-wide comparison. Because of this reason, some of the international organization acceded to unification of definitions. It is mainly talked about NATO, SIPRI or IMF. However, these one use a little bit different characteristic.
Posted on: Tue, 30 Jul 2013 11:32:57 +0000
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