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Article
Country Survey: Military Expenditure And Its Impact On Productivity In Italy, 1988–2008
Defence and Peace Economics (2011)
  • Raul Caruso
  • Francesco Addesa, University of Salerno
Abstract

This paper analyses the military expenditures in Italy over the period 1988–2008. The estimation of a conventional model of military expenditure shows that the choices of military expenditure by Italian governments are influenced by US and, to a lesser extent, the other NATO countries’ defence spending. In particular, the negative association between the US and NATO average military expenditure on the Italian one suggests a free-rider behaviour of Italy. Eventually, we focus on the relationship between productivity and military expenditure. The results suggest that there is a negative association between productivity and military expenditures in the long run. Namely, if military expenditures were substituted by civilian expenditures, the Italian overall productivity would be expected to improve.

Keywords
  • Military expenditures,
  • Productivity
Disciplines
Publication Date
Winter November, 2011
Citation Information
Raul Caruso and Francesco Addesa. "Country Survey: Military Expenditure And Its Impact On Productivity In Italy, 1988–2008" Defence and Peace Economics (2011)
Available at: http://works.bepress.com/raul_caruso/45/