Military spending and economic growth: is there an interdependence? Case of developed countries

Abstract

This study investigates the impact of military spending and arms exports on economic growth. Using data from developed countries spanning the period 1973–2022, we employ a regression model to analyse the relationship between gross domestic investment, military expenditure, arms exports, and GDP per capita growth. Our findings indicate that domestic investment has a significant positive influence on economic growth, while military spending and arms exports show negligible effects. The results emphasize the critical importance of domestic investment in fostering economic development, highlighting its superiority over military-related expenditures and exports in shaping economic outcomes.