Military Expenditures 1972-1990: The Reasons Behind the Post-1985 Fall in World Military Spending

March 1, 1993

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

World military expenditures have fallen by over 20 percent in proportion to GDP from 1985 to 1990. This study examines the determinants of military expenditures in 125 countries during 1972-90 to ascertain what factors may be behind the recent decreases. Economic decline among developing countries in the 1980s and among industrial countries in the later part of the decade emerges as one possible factor. A second is the move towards more democratic regimes, which could diminish support for the military. A third factor is the improved world security situation and the concomitant decrease in military aid by the former major cold war combatants.

Subject: Central government spending, Defense spending, Expenditure, National accounts, Personal income, Population and demographics, Public financial management (PFM)

Keywords: central government, Central government spending, civil war, country equation, Defense spending, Eastern Europe, form of government, Middle East, military expenditure, net creditor nation, North Africa, North African country, Personal income, proportion of GDP, Sub-Saharan Africa, transition country, Western Hemisphere, WP

Pages:
42
Volume:
1993
DOI:
https://doi.org/10.5089/9781451843590.001
Issue:
018
Series:
Working Paper No. 1993/018
Stock No:
WPIEA0181993
ISBN:
9781451843590
ISSN:
1018-5941

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