TY - JOUR
T1 - Military spending and economic growth in sri lanka
T2 - A time series analysis
AU - Wijeweera, Albert
AU - Webb, Matthew J.
PY - 2009/12
Y1 - 2009/12
N2 - In this paper, we employ a VAR analysis to examine the nexus between military spending and economic growth in Sri Lanka which, due to the civil war there, has witnessed a significant increase in military spending over the last three decades while also recording healthy economic growth. The study finds that, compared with non-military spending, military spending exerts only a minimal positive impact on real GDP. Over a 10-year period, a 1% increase in nonmilitary spending increases GDP by 1.6%. In contrast, military spending only increases GDP by 0.05%, suggesting that the economic benefits for Sri Lanka from a sustained peace may be considerable.
AB - In this paper, we employ a VAR analysis to examine the nexus between military spending and economic growth in Sri Lanka which, due to the civil war there, has witnessed a significant increase in military spending over the last three decades while also recording healthy economic growth. The study finds that, compared with non-military spending, military spending exerts only a minimal positive impact on real GDP. Over a 10-year period, a 1% increase in nonmilitary spending increases GDP by 1.6%. In contrast, military spending only increases GDP by 0.05%, suggesting that the economic benefits for Sri Lanka from a sustained peace may be considerable.
KW - Economic growth
KW - Military spending
KW - Sri Lanka
KW - VAR analysis
UR - http://www.scopus.com/inward/record.url?scp=71949086174&partnerID=8YFLogxK
U2 - 10.1080/10242690902868301
DO - 10.1080/10242690902868301
M3 - Article
AN - SCOPUS:71949086174
SN - 1024-2694
VL - 20
SP - 499
EP - 508
JO - Defence and Peace Economics
JF - Defence and Peace Economics
IS - 6
ER -
