Event Title

War Economics - An Examination of World's Countries and their Military Expenditure

Location

CSU 202

Start Date

18-4-2016 10:00 AM

End Date

18-4-2016 11:00 AM

Student's Major

Economics

Student's College

Social and Behavioral Sciences

Mentor's Name

Kwang Woo Park

Mentor's Department

Economics

Mentor's College

Social and Behavioral Sciences

Description

The governments of so called war economies spend extraordinary amounts in the military sector and intervene in the market. On the one hand, parts of the economy like education or the social sector might suffer from an under-allocation of resources and a disadvantage might arise for the ordinary population. On the other hand, the economy of those countries might be stimulated by a conflict situation and high expanses for military are necessary because a big part of the population depend on this sector. The purpose of this empirical research is to examine if military expenditure influences economic growth. There might be a point on which economies do not profit from high military expanses anymore and economic growth turns negative. To investigate this research question, we conduct a time series approach on the GDP growth rate and military expanses of defined war economies. In addition, other sectors of the economy will be examined to find out if there is a trade-off between military expenditure and, for example, the educational sector which could also contribute to a higher growth rate but has not enough financial power to develop itself. We attempt to get a better understanding on the relationship between military expenses and economic growth. As a result, we want to convey policy implications regarding efficient ways of distributing resources.

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Apr 18th, 10:00 AM Apr 18th, 11:00 AM

War Economics - An Examination of World's Countries and their Military Expenditure

CSU 202

The governments of so called war economies spend extraordinary amounts in the military sector and intervene in the market. On the one hand, parts of the economy like education or the social sector might suffer from an under-allocation of resources and a disadvantage might arise for the ordinary population. On the other hand, the economy of those countries might be stimulated by a conflict situation and high expanses for military are necessary because a big part of the population depend on this sector. The purpose of this empirical research is to examine if military expenditure influences economic growth. There might be a point on which economies do not profit from high military expanses anymore and economic growth turns negative. To investigate this research question, we conduct a time series approach on the GDP growth rate and military expanses of defined war economies. In addition, other sectors of the economy will be examined to find out if there is a trade-off between military expenditure and, for example, the educational sector which could also contribute to a higher growth rate but has not enough financial power to develop itself. We attempt to get a better understanding on the relationship between military expenses and economic growth. As a result, we want to convey policy implications regarding efficient ways of distributing resources.

Recommended Citation

Deeg, Franziska. "War Economics - An Examination of World's Countries and their Military Expenditure." Undergraduate Research Symposium, Mankato, MN, April 18, 2016.
http://cornerstone.lib.mnsu.edu/urs/2016/oral-session-02/3