Defense Spending and Economic Performance: Evidence from the Arabian Countries

Abstract

This study examines the relationship between defense spending and economic growth in a group of the Arab countries. Regression equations were estimated based on time-series and pooled data sets. The results confirmed that the relationship between military spending and economic growth hinges upon circumstances and does not follow some general law applicable to all places. Growth retardation and acceleration have been recorded in country-wise regression analysis, though precise coefficients differ from one country to another.