Premium
Military Expenditures and Profit Rates: Evidence from OECD Countries
Author(s) -
Elveren Adem Y.,
Hsu* Sara
Publication year - 2016
Publication title -
metroeconomica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.256
H-Index - 29
eISSN - 1467-999X
pISSN - 0026-1386
DOI - 10.1111/meca.12111
Subject(s) - linkage (software) , economics , distributed lag , profit (economics) , panel data , demographic economics , econometrics , microeconomics , biochemistry , chemistry , gene
This article provides evidence of the effect of military expenditures on the rate of profits for 24 OECD countries for the period of 1963–2008 by employing a panel autoregressive distributed lag model within a Marxist framework for the first time. Findings show that while for the whole period there is positive linkage between military expenditures and profit rates, in the post‐1980 era the impact of military expenditures is negative. Findings suggest weak evidence that there is positive linkage between military expenditures and profit rates for arms‐exporting countries and negative linkage for non‐arms‐exporting countries.