Is Military Spending Converging Across Countries? An Examination of Trends and Key Determinants

22 Pages Posted: 8 Nov 2019

See all articles by Benedict Clements

Benedict Clements

International Monetary Fund (IMF) - African Department

Sanjeev Gupta

Center for Global Development

Saida Khamidova

Independent

Date Written: September 2019

Abstract

This paper studies the evolution of worldwide military spending during 1970-2018. It finds thatmilitary spending in relation to GDP is converging, but into three separate groups of countries. Inthe largest group, responsible for 90 percent of worldwide spending, outlays have remainedstubbornly high. Military spending in developing economies reacts to improvements in securityconditions and military spending in neighboring countries, suggesting that further increases inthe peace dividend are possible. In developing economies, rising social spending tends to crowdout military outlays, but this is not the case in advanced economies. With social outlays projectedto rise as developing countries look to achieve the Sustainable Development Goals (SDGs),military spending could come under pressure to fall further.

Keywords: Military expenditures, Age-related spending, Capital expenditure, Education spending, Government expenditures, Military spending, social spending, convergence., WP, military spend, military expenditure, develop economy, percentage of GDP, SIPRI

JEL Classification: H50, H51, H52, H56, E01, H42, H53, E62

Suggested Citation

Clements, Benedict and Gupta, Sanjeev and Khamidova, Saida, Is Military Spending Converging Across Countries? An Examination of Trends and Key Determinants (September 2019). IMF Working Paper No. 19/196, Available at SSRN: https://ssrn.com/abstract=3482279

Benedict Clements (Contact Author)

International Monetary Fund (IMF) - African Department ( email )

1700 19th Street, NW
Washington, DC 20431
United States

Sanjeev Gupta

Center for Global Development ( email )

2055 L St. NW
5th floor
Washington, DC 20036
United States

Saida Khamidova

Independent ( email )

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
23
Abstract Views
153
PlumX Metrics