Open AccessTHE THEORETICAL APPROACHES TO ASSESSING EFFECTS OF MILITARY EXPENDITURE ON GROWTH
Author(s) -
Гаяне Арутюнян,
Gayane Harutyunyan
Publication year - 2018
Publication title -
russian journal of management
Language(s) - English
Resource type - Journals
eISSN - 2500-1469
pISSN - 2409-6024
DOI - 10.29039/article_5c76b0e5c1db78.32516834
Subject(s) - economics , order (exchange) , empirical research , public economics , development economics , macroeconomics , finance , statistics , mathematics
Research of the relationship between economic growth and military expenditures has been one of the central issues in the economic debates since 1980s, but the theorists failed to come to consensus on this issue via empirical studies. Hence, studies of some statistical evidence suggest logical question: whether military expenditures contribute to economic growth, or on the contrary, economic growth enables to increase countries military spending? In this paper, we have analyzed the main economic thought school’s approaches to assessment of military expenditure impact on growth, in order to reveal the mechanisms of this impact. Then by statistical analysis we have found out how the relationship between military expenditure and GDP was manifested in Armenia. Based on the analysis results, we concluded that military expenditures haven’t stimulated GDP growth in Armenia.