<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>This study aims to validate assumptions established by primary literature regarding the bidirectional causality between military spending and economic growth, and further develop the analysis of the main drivers of military expenditures in NATO countries. The empirical analysis is based on a sample of 30 NATO countries, with the main objective of investigating the role of other factors that might influence military spending. In addition to the common view that economic growth and population are the main drivers, we propose additional exogenous factors, such as fiscal policy determinants, that could play a key role in enhancing or reducing military spending. Our findings support the existence of a bi-directional causality between GDP and military spending. Additionally, we find that military expenditure is highly responsive to tax revenues collected for public coffers.</p>
</abstract>

This study aims to validate assumptions established by primary literature regarding the bidirectional causality between military spending and economic growth, and further develop the analysis of the main drivers of military expenditures in NATO countries. The empirical analysis is based on a sample of 30 NATO countries, with the main objective of investigating the role of other factors that might influence military spending. In addition to the common view that economic growth and population are the main drivers, we propose additional exogenous factors, such as fiscal policy determinants, that could play a key role in enhancing or reducing military spending. Our findings support the existence of a bi-directional causality between GDP and military spending. Additionally, we find that military expenditure is highly responsive to tax revenues collected for public coffers.

Growth, Taxes and Guns: A Multifaceted Analysis of Military Expenditure Drivers

International conference KNOWLEDGE-BASED ORGANIZATION

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"Growth, Taxes and Guns: A Multifaceted Analysis of Military Expenditure Drivers"}

This study aims to validate assumptions established by primary literature regarding the bidirectional causality between military spending and economic growth,...

Growth, Taxes and Guns: A Multifaceted Analysis of Military Expenditure Drivers

Published Online: Jul 04, 2024

Page range: 1 - 7

DOI: https://doi.org/10.2478/kbo-2024-0046

Keywords
military expenditure, economic growth, fiscal policy, tax revenues

© 2024 Marian Dobranschi et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Growth, Taxes and Guns: A Multifaceted Analysis of Military Expenditure Drivers

Published Online: Jul 04, 2024

Page range: 1 - 7

DOI: https://doi.org/10.2478/kbo-2024-0046

Keywordsmilitary expenditure, economic growth, fiscal policy, tax revenues

© 2024 Marian Dobranschi et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
military expenditure, economic growth, fiscal policy, tax revenues