Dynamic Analysis of Military Expenses Impact on Economic Growth in the Oil and Non-Oil Middle East Countries

Document Type : Original Article

Authors

1 Assistant Professor of Economics. Bu-Ali Sina University

2 University of Lorestan

Abstract

This paper examines the impact of military expenses on economic growth of oil and non- oil Middle East countries by a dynamic model. Since Middle East countries are placed in a strategic region and their military expenses are increasing continuously, the study of relation between military expenses and economic growth of these countries is very important. In this regard, used an augmented Solow model (proposed by Knight, Loayza and Villanueva (1996)) during the period (1988-2012). The results of this research by using generalized method of moments show the negative impact of military expenses on economic growth in the Middle East countries. Also, by separation of countries in this area to the two groups of oil and non-oil countries shown that the negative impact of these expenses on economic growth in the oil countries is more than non-oil countries.

Keywords

References

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Journal of Economics and Modelling
Volume 4, 14-15
December 2013
Pages 47-74

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