Corruption and Military Spending
January 1, 2000
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Summary
Anecdotal evidence relates corruption with high levels of military spending. This paper tests empirically whether such a relationship exists. The 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. The results suggest that corruption is indeed associated with higher military spending as a share of both GDP and total government spending, as well as with arms procurement in relation to GDP and total government spending. This evidence indicates that defense spending can be considered for constructing governance indicators.
Subject: Corruption, Crime, Defense spending, Education, Expenditure, Total expenditures
Keywords: conflict-country dummy, Corruption, Defense spending, Global, government spending, IMF program country, military spending, panel data, procurement activity, spending, Total expenditures, utility function, WP
Pages:
31
Volume:
2000
DOI:
Issue:
023
Series:
Working Paper No. 2000/023
Stock No:
WPIEA0232000
ISBN:
9781451844030
ISSN:
1018-5941
