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Military spending and entrepreneurship: Spatial effects of cross‐country spillovers
Author(s) -
Goel Rajeev K.,
Saunoris James W.
Publication year - 2018
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.2910
Subject(s) - entrepreneurship , economics , crowds , politics , government (linguistics) , panel data , government spending , cross country , economic freedom , sample (material) , econometric model , quality (philosophy) , work (physics) , demographic economics , labour economics , economic geography , public economics , econometrics , political science , market economy , finance , mechanical engineering , linguistics , philosophy , chemistry , computer security , chromatography , epistemology , computer science , welfare , law , engineering
This paper uses a large cross‐country panel data sample to examine the effects of military spending on entrepreneurship. The other major contribution of this work lies in studying the spatial cross‐country influences of military spending on entrepreneurship. Placing the econometric model in the broader literature on the determinants of entrepreneurship, results show that while own military spending crowds out entrepreneurship in a country, bordering military spending promotes entrepreneurship. In other findings, we find interesting contrasts between the effects of government size and government quality, and between economic freedom and political freedom.