The purpose of this paper is to identify the complementary effect of corruption and military sector on economic performance and to test the magnitude of their impact separately. Unlike the method generally used in the economic literature, we estimate a cardinal corruption index expressed as a percentage of GDP per capita through the multiple causes multiple indicators model (MIMIC). The cross-country results show a negative impact of military spending and corruption indicator on economic performance, which are in line with previous findings. However, the negative effect is mitigated by a significant positive, though asymmetric, relationship between these two factors in affecting per capita growth rate. Copyright © 2008 The Berkeley Electronic Press. All rights reserved.
Pieroni, L., D'Agostino, G. (2009). Military spending, corruption and economic growth. PEACE ECONOMICS, PEACE SCIENCE, AND PUBLIC POLICY, 14(3) [10.2202/1554-8597.1141].
Military spending, corruption and economic growth
Pieroni, Luca;D'AGOSTINO, GIORGIO
2009-01-01
Abstract
The purpose of this paper is to identify the complementary effect of corruption and military sector on economic performance and to test the magnitude of their impact separately. Unlike the method generally used in the economic literature, we estimate a cardinal corruption index expressed as a percentage of GDP per capita through the multiple causes multiple indicators model (MIMIC). The cross-country results show a negative impact of military spending and corruption indicator on economic performance, which are in line with previous findings. However, the negative effect is mitigated by a significant positive, though asymmetric, relationship between these two factors in affecting per capita growth rate. Copyright © 2008 The Berkeley Electronic Press. All rights reserved.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
