{
  "title": "The Impact of Worldwide Military Spending Cutson Developing Countries",
  "publication": "IMF Working Papers, November 1, 1993",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/30/the-impact-of-worldwide-military-spending-cutson-developing-countries-1141",
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  "summary": "This paper investigates the economic impact of a coordinated reduction in military expenditures of 20 percent using a specially modified version of the MULTIMOD world economic model.",
  "sections": [
    {
      "heading": "Overview",
      "content": "- Authors: Steven A. Symansky, Tamim Bayoumi, Daniel P. Hewitt\n- Publication date: November 1, 1993\n- Format: IMF Working Paper No. 1993/086, Issue: 086, Volume: 1993, Pages: 38\n- DOI: https://doi.org/10.5089/9781451850802.001\n- Stock No: WPIEA0861993\n- ISBN: 9781451850802\n- ISSN: 1018-5941\n- Model used: specially modified version of the MULTIMOD world economic model\n- Subject keywords: Defense spending, Expenditure, Exports, Foreign exchange, Imports, International trade, National accounts, Private consumption, Real exchange rates\n- Selected region/keyword tags as in source: Africa; Eastern Europe; Western Hemisphere; developing country region; b. developing country region; arms export; arms import; Cutson developing countries; developing countries benefit; developing country economy; developing country framework; expenditure pattern; government spending; leads to a decrease; military expenditure; military spending; Private consumption; region of the world; WP"
    },
    {
      "heading": "Principal simulation result",
      "content": "- Scenario analyzed: coordinated reduction in military expenditures of 20 percent\n- Core quantitative findings:\n  - In developing countries the present value of consumption increases by 46 percent of 1992 GDP\n  - Military expenditures cuts, in present value terms, equal 33 percent of 1992 GDP"
    },
    {
      "heading": "Channels and interpretation of gains",
      "content": "- Mechanisms identified by the simulations:\n  - Release of domestic resources due to lower military spending\n  - Positive international economic externality driven by enhanced trade\n  - Lower world interest rates contributing to welfare gains\n- Comparative outcomes:\n  - Net debtor developing country gains exceed those of industrial countries"
    },
    {
      "heading": "Cross-country patterns",
      "content": "- Examination of individual developing country economies confirms:\n  - The external trade effect is significant in determining both the pattern and the level of gains across developing countries"
    },
    {
      "heading": "Policy-relevant implications (as presented)",
      "content": "- Coordinated reductions in military spending can:\n  - Increase consumption in developing countries substantially relative to the fiscal cost measured in present value terms\n  - Generate international spillovers via trade and global interest rates that benefit debtor developing countries more than industrial countries\n\nSource: IMF Working Papers — \"The Impact of Worldwide Military Spending Cutson Developing Countries\", Steven A. Symansky, Tamim Bayoumi, Daniel P. Hewitt, November 1, 1993.\n\n---\n\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/30/the-impact-of-worldwide-military-spending-cutson-developing-countries-1141"
    }
  ],
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    "Authors: Steven A. Symansky, Tamim Bayoumi, Daniel P. Hewitt",
    "Published: November 1, 1993",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451850802.001",
    "Authors: Steven A. Symansky, Tamim Bayoumi, Daniel P. Hewitt",
    "Publication date: November 1, 1993",
    "Format: IMF Working Paper No. 1993/086, Issue: 086, Volume: 1993, Pages: 38",
    "DOI: https://doi.org/10.5089/9781451850802.001",
    "Stock No: WPIEA0861993",
    "ISBN: 9781451850802",
    "ISSN: 1018-5941",
    "Model used: specially modified version of the MULTIMOD world economic model",
    "Subject keywords: Defense spending, Expenditure, Exports, Foreign exchange, Imports, International trade, National accounts, Private consumption, Real exchange rates",
    "Selected region/keyword tags as in source: Africa; Eastern Europe; Western Hemisphere; developing country region; b. developing country region; arms export; arms import; Cutson developing countries; developing countries benefit; developing country economy; developing country framework; expenditure pattern; government spending; leads to a decrease; military expenditure; military spending; Private consumption; region of the world; WP",
    "Scenario analyzed: coordinated reduction in military expenditures of 20 percent",
    "Core quantitative findings:",
    "Mechanisms identified by the simulations:",
    "Comparative outcomes:",
    "Examination of individual developing country economies confirms:",
    "Coordinated reductions in military spending can:"
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