Military Expenditures and Economic Growth: Some Theoretical Remarks

Abstract

Only a few economists are interested in the economic aspects of the military sector and military expenditures. The political and strategic considerations of military expenditures are, perhaps, so overwhelming, that economists are not encouraged to investigate the economic consequences of these expenditures. This is also true for the economic causes of military expenditures. Some economic factors, like the uninterrupted flow of strategic commodities, determine the international security situation and, therefore, the level of military expenditures. If one realises that military expenditures account for 6 per cent of GNP this lack of interest of economists is not defensible. There are for example, many more specialised development economists working in the industrialised countries, while development expenditures are less than 1 per cent of GNP!