The impact of military spending on economic growth in Kuwait since 1995

The standard studies on the relationship between military spending and economic growth have increased, The results of these standard studies have varied, There have been at least four results of the relationship between military expenditure and economic growth: a group of researchers have shown a positive causal relationship ranging from military spending to economic growth, and pointed out that defense expenditures directly stimulate economic growth by increasing purchasing power and aggregate demand, A second group of researchers also noted that there is a negative relationship between military expenditure and economic growth, and proved that military spending is detrimental to growth Because the funding of military spending will divert resources away from more productive government spending such as education and health services, Another group has shown that the causal relationship between military expenditure and economic growth is two-way, that military spending leads to increased economic growth and economic growth leads to higher military spending, And another group indicated military spending no effect on economic growth with long-term.

The results of the standard model used in this study showed that there is negative correlation between military expenditure and economic growth in Kuwait, This study is consistent with the second group of researchers, which indicated that there is a negative impact of military spending on economic growth, (Expenditure: salaries, maintenance, etc.), and that the allocation of a large part of military expenditures to expenditures not used in the military industrialization process is considered to be effective in the process of economic growth .