seyyed parviz jalili kamju; ramin khochiani
Abstract
Based on economic structure of a country, defense spending and security costs as a public good, can have a positive or negative impact on private sector activities. This research applies a partial coherence approach for the period 1959-2017 to evaluate the relationship between defense spending and security ...
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Based on economic structure of a country, defense spending and security costs as a public good, can have a positive or negative impact on private sector activities. This research applies a partial coherence approach for the period 1959-2017 to evaluate the relationship between defense spending and security costs as two important parts of the state budget, with the formation of a fixed private capital and oil revenues with a constant tax effect. The results showed that by keeping the effect of tax revenues as fixed in four-year time scales, and in the period 1969-1978, defensive expenditures and the formation of fixed private capital were not co-phase and defense expenditure was a leading variable for the formation of fixed capital, which shows a confirmation of crowding-out effect in Iranian economy. In contrast, in period 1989-1997, these two variables are co-phase and no crowding-out effect has occurred. Also, in short- and long-term, the formation of private fixed capital is a leading variable that justifies the need for security and increasing its costs. During period 1969-1978, in the short-term, two variables of defense spending and oil revenues are in opposite phase. The two variables of security costs and oil revenues are in co-phase in the short run and the phasic difference arrows indicate the causality of oil revenues to security costs during the years 1986-1999. Based on the structure of Iranian economy and the fact that Iran does not export military equipment, it is suggested that defense spending be optimized in order to control the crowding-out effect and security costs to be increased to the point that they have a positive impact on the formation of private equity.
Aliasghar Esmaeilnia; Shahram i Vasfi Asfestan
Abstract
Due to different approaches to study security, there are several different indicators and policy recommendations for each of these approaches and they have different economic effects on societies. In this study the economic effects of traditional and new security approaches are studied by using different ...
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Due to different approaches to study security, there are several different indicators and policy recommendations for each of these approaches and they have different economic effects on societies. In this study the economic effects of traditional and new security approaches are studied by using different indicators, including indicators of the fragility of governments, perceived corruption, peace and military expenditure, for 135 countries in the period 2004 to 2014 and 2008 to 2014 by applying panel data method. The results show that factors of government fragility and military expenditure has negative impact on economic growth. The wider the extent of governments fragility, the less economic growth will be seen in those countries. The Relationship between "Corruption Perception Index" and economic growth shows that economic growth is high in the countries with less corruption in government sector. The study of the relationship between "Global Peace Index" and "government fragility index" with the investment in the countries show that global peace index has a positive impact and government fragility index has a negative impact on investment. In general, we can say the indices based on traditional approaches of security don’t have a positive impact on economic growth and, on the opposite side, the indices based on new approaches toward security have positive relation with economic factors, because they are structure-oriented and consider a wide range of factors leading to insecurity.
