Military Spending and Economic Growth: The Case of Iran

Military Spending and Economic Growth: The Case of Iran

Over the last decade, the Iranian government budget on military has been higher than the average of the world. The current increasing international sanctions aim to reduce the military capabilities and capacities of the Iranian government. We analyze the response of the Iranian economy to shocks in...

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Wedi'i Gadw mewn:
Manylion Llyfryddiaeth
Cyhoeddwyd yn:MAGKS - Joint Discussion Paper Series in Economics (Band 23-2012)
Prif Awdur: Farzanegan, Mohammad Reza
Fformat: Arbeit
Iaith:Saesneg
Cyhoeddwyd: Philipps-Universität Marburg 2012
Pynciau:
Military spending
Wirtschaft
VAR model
Sanctions, Iran
Economic growth
Impulse Response
Economics
Mynediad Ar-lein:Testun PDF llawn
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Crynodeb:Over the last decade, the Iranian government budget on military has been higher than the average of the world. The current increasing international sanctions aim to reduce the military capabilities and capacities of the Iranian government. We analyze the response of the Iranian economy to shocks in its military budget from 1959-2007, using Impulse Response Functions (IRF) and Variance Decomposition Analysis (VDA). The Granger causality results show that there is unidirectional causality from the military spending growth rate to the economic growth rate. The response of income growth to increasing shocks in the military budget is positive and statistically significant.
ISSN:1867-3678
DOI:10.17192/es2024.0137

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