چکیده:
Middle East is a strategic region because of its abundant oil reserves, hostile struggles among the countries, and threat of the radical groups. The countries of this region spend a large amount of their annual budgets on buying weapons and war armaments. The purpose of this paper is to study the impact of military expenditures on economic growth of oil and non-oil Middle East countries by a dynamic panel model during 1988-2012. The paper results show the negative impact of the military expenditures on economic growth of the Middle East countries which is more visible in oil countries than the non-oil ones.
خلاصه ماشینی:
The purpose of thispaper is to study the impact of military expenditures on economic growth of oil and non-oil Middle East countries by a dynamic panelmodel during 1988-2012.
The paper results show the negative impact of the military expenditures on economic growth of the Middle Eastcountries which is more visible in oil countries than the non-oil ones .
In this paper, the impact of MEs on economic growth in 14 important Middle East countries during 1988-2014 is studied by Generalized Method of Moments (GMM).
The main hypothesis of this research is as follows: "The impact of ME on economic growth of countries of the Middle East region is negative and significant.
0 Resource: Research calculations using SIPRI data Regarding the ascending trend of ME in the Middle East region, some questions are considered: Have these costs (due to budget constraints) been able to increase economic growth in the Middle East by creating positive economic effects, such as security, or has the economic growth been reduced in these countries by the negative effects of the economy, such as crowding-out impact of these expenditures with the other ones (including costs of health care, education and so on...
4. Model and Methodology The augmented Solow model was used in this research to study the impact of ME on economic growth of oil-producing and non-oil producing countries of the Middle East.
The results of estimating the model suggest a negative relationship between ME and economic growth of oil and non-oil countries in the Middle East.