Corruption and Military Spending
IMF Working Papers, January 1, 2000
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Bibliographic details
- Published: January 1, 2000
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451844030.001
Summary and Research Question
- Anecdotal evidence relates corruption with high levels of military spending.
- This paper tests empirically whether such a relationship exists.
Data and Methodology
- Empirical analysis is based on data from four different sources for up to 120 countries in the period 1985–98.
- The association between military spending and corruption is ascertained by using panel regression techniques.
Key Findings
- The results suggest that corruption is indeed associated with higher military spending as a share of both GDP and total government spending.
- Corruption is also associated with higher arms procurement in relation to GDP and total government spending.
- This evidence indicates that defense spending can be considered for constructing governance indicators.
Policy Implications and Interpretation
- Defense spending measures may be informative inputs when constructing governance and corruption indicators.
- The empirical association implies that anti-corruption efforts and public expenditure oversight could be relevant to managing military spending efficiency and composition.
Content in this bundle
- Corruption and Military Spending - WP/00/23