Military expenditure and economic growth : an overview of research

There are three major findings. (1) Military expenditures are easily hidden and are thus difficult to measure and assess. (2) Contrary to conventional wisdom, high military expenditure is negatively related to growth. (3) Specifically, high military expenditure has a negative impact on human resource development, modernization, technology transfer, and the industrial sector. Recommendations are to: (1) increase resources for collecting data on military expenditures; (2) match any increase in military assistance with a proportional increase in economic assistance; (3) conduct country-level analyses of military expenditures so that policymakers can better understand economic conditions in countries with differing levels of military spending; (4) promote improved strategic factors as an argument for improved economic growth.