Click here for search results
The peace dividend : military spending cuts and economic growth, Volume 1
Author:Knight, Malcolm; Loayza, Norman; Villanueva, Delano; Date Stored:2003/07/30
Document Date:1996/02/29Document Type:Policy Research Working Paper
SubTopics:Environmental Economics & Policies; Achieving Shared Growth; Economic Theory & Research; Legal Products; Peace & Peacekeeping; Inequality; DecentralizationLanguage:English
Major Sector:(Historic)Economic PolicyReport Number:WPS1577
Sub Sectors:(Historic)Macro/non-tradeCollection Title:Policy, Research working paper ; no. WPS 1577
Volume No:1  

Summary: Conventional wisdom suggests that reducing military spending may improve a country's economic growth, but empirical studies have produced ambiguous results on this point. Extending a standard growth model, the authors exploit both cross-section and time-series dimensions of available data to get consistent estimates of the growth-retarding effects of military spending. Military spending is growth-retarding because of its adverse impact on capital formation and resource allocation. Model simulation results suggest a substantial long-term peace dividend - in the form of higher capacity output per capita - that may result from: 1) markedly lower military spending in most regions in the late 1980s; and 2) future cuts in military spending if global peace is secured.

Official Documents
Official, scanned versions of documents (may include signatures, etc.)
File TypeDescriptionFile Size (mb)
PDF 60 pagesOfficial version*4.2 (approx.)
TextText version**
How To Order
Light-Weight Documents
Lighter (less MB) documents which may or may not be the final, official version
File TypeDescriptionFile Size (mb)
PDF 60 pagesWPS15771.85

* The official version is derived from scanning the final, paper copy of the document and is the official,
archived version including all signatures, charts, etc.
** The text version is the OCR text of the final scanned version and is not an accurate representation of the final text.
It is provided solely to benefit users with slow connectivity.

Permanent URL for this page: