This study found a clear negative effect of military spending on economic growth. The panel autoregressive distributed lag (ARDL)/pooled mean group (PMG) technique is employed, while, in addition the robust least squares and fixed-effect estimators are implemented for the robustness of the results. A multivariate regression model based on the augmented production function is used to achieve the objective of the study. This study aims to empirically evaluate the impact of military spending on economic growth for a panel of 35 non-OECD countries over 1988–2019. Europe‐Asia Studies, 42(4), 675-699.Undeniably, peace and long-term sustainable economic development are the prime agenda of all countries. An Economic History of the USSR, 1st edn, London: Allen Lane, 1969 revised 1989 revised as An Economic History of the USSR, 1917–1991. The controversy over Western measures of Soviet defense expenditures. How much did the Soviets really spend on defence? New evidence from the close of the Brezhnev era. Resource mobilization for World War II: the USA, UK, USSR, and Germany, 1938‐1945′. ![]() Hitotsubashi journal of economics, 41-61.įederation of American Scientists (2000) The Soviet Military Burden: A Critical Analysis of Current Research. The Reagan administration, economic warfare, and starting to close down the cold war. CRS Report for Congress, March.ĭobson, A. Presidential Studies Quarterly, 27(3), 451-466.ĬIA (1977) Estimated Soviet Defense Spending in Rublesĭaggett, S., & Belasco, A. Ronald Reagan and the defeat of the Soviet empire. Farm to factory: a reinterpretation of the Soviet industrial revolution. Here someone got a figure that looks like mine, and it also shows that the Soviet increase in spending came way before Reagan:Īllen, R. Reagan's increase from valley to peak was of 62.5% while the Soviet answer to that was a mere 12%. If this is so, then Reagan's buildup didn't really increase the Soviet's military burden. Population for the US comes from the US Census, population for the USSR comes from the UN. For that, I multiply my values above by GDP as measured by Maddison (I assume 18% of GDP spending for the Soviets in the 78-85 period), and then I multiply by population. We can also look at military spending on a per capita basis, and see also the absolute amount of spending. Rather, The Soviet Union committed suicide by virtue of the deterioration of its economic system in the late 70s. ![]() In that sense, he didn't win the Cold War. For more, see the AskHistorians subreddit) Reagan's policies were at much a secondary factor in explaining why the Soviet economy crashed. Being street bayesians, let's conclude that it was 18% for now.īonus: Was US military technology more advanced than the Soviet's? Yes, but not by a large margin (Perry, 1973)īonus2: Did Reagan induce a Soviet increase in military spending that in turn lead to the collapse of the Soviet Union? (For the thesis see Busch 1997, against the thesis Dobson 2005. However, Harrison 2003 leads some support to the idea that actual military spending was around 20%, at the upper range of the Cold War estimates. Given my chart, one would say that military spending was around 10-20% of Soviet GDP, so perhaps a compromise figure of 15%, around twice USA spending. During the Cold War there was a whole literature (Dudkin & Vasilevsky 1987, Noren 1995, Steinberg 1990) devoted to these estimates. The huge dispersion in 1980 comes from Harrison (2003), where he collects many different estimates.Įven today we don't have fully reliable numbers on Soviet military spending. I used % of National Income (GDP for usa, and NMP converted to GDP for the Soviet Union) for both countries, but different procedures for computing Soviet GDP will yield different estimates. Notice that this chart is put together from different sources. This one is easier than the previous ones
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