THE EFFECT OF MILITARY BUDGET EXPENDITURE SHARE ON ECONOMIC GROWTH IN IRAN

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KARIMI POTANLAR SAEED; BAJELAN ALI AKBAR

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Journal: Iranian Journal of Economic Research Year:2014 | Volume:19 | Issue:61 Page(s): 63-83

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Title

THE EFFECT OF MILITARY BUDGET EXPENDITURE SHARE ON ECONOMIC GROWTH IN IRAN

Author(s)

KARIMI POTANLAR SAEED | BAJELAN ALI AKBAR | Issue Writer Certificate

Keywords

OPTIMAL PROPORTION OF MILITARY BUDGET EXPENDITUREQ2

ENDOGENOUS GROWTH MODELQ2

AUTO-REGRESSIVE DISTRIBUTED LAG MODELQ2

Abstract

The article is aimed at investigating the effect of the military budget expenditure share in GDP on the Iranian economic growth in the ENDOGENOUS GROWTH MODEL framework. To meet this end, using the time-series data of Iran during 1988 to 2012 and the Auto-Regressive Distribution Lag Model, the effect of military budget expenditure share in GDP on economic growth has been studied. The results show an inverted U-shape relationship between economic growth and military budget expenditure share in GDP. Therefore, there is a proportion for military budget expenditure which maximizes the economic growth, which is 2.73 percent from GDP which is lower than (2.95 percent) the average proportion in the considered time period. As a result, it seems that the society can benefit from reallocating the resources to non-military budget expenditures such as education and health.

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APA: Copy

KARIMI POTANLAR, SAEED, & BAJELAN, ALI AKBAR. (2014). THE EFFECT OF MILITARY BUDGET EXPENDITURE SHARE ON ECONOMIC GROWTH IN IRAN. IRANIAN ECONOMIC RESEARCH, 19(61), 63-83. SID. https://sid.ir/paper/2633/en

Vancouver: Copy

KARIMI POTANLAR SAEED, BAJELAN ALI AKBAR. THE EFFECT OF MILITARY BUDGET EXPENDITURE SHARE ON ECONOMIC GROWTH IN IRAN. IRANIAN ECONOMIC RESEARCH[Internet]. 2014;19(61):63-83. Available from: https://sid.ir/paper/2633/en

IEEE: Copy

SAEED KARIMI POTANLAR, and ALI AKBAR BAJELAN, “THE EFFECT OF MILITARY BUDGET EXPENDITURE SHARE ON ECONOMIC GROWTH IN IRAN,” IRANIAN ECONOMIC RESEARCH, vol. 19, no. 61, pp. 63–83, 2014, [Online]. Available: https://sid.ir/paper/2633/en

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