248 pages | 4 B/W Illus.
The Economics of Military Spending offers a comprehensive analysis of the effect of military expenditures on the economy. It is the first book to provide both a theoretical and empirical investigation of how military spending affects the profit rate, a key indicator of the health of a capitalist economy.
This volume examines the role of military spending in the economy, with special attention to its effect on the rate of profit. It presents a general discussion on the economic models of the nexus of military spending and economic growth, as well as military Keynesianism and the Military Industrial Complex. Including an account of the Marxist crisis theories, it focuses on military spending as a counteracting factor to the tendency of rate of profit to fall. Using a range of econometric methods and adopting a Marxist perspective, this book provides comprehensive evidence on the effects of military spending on the rate of profit for over thirty countries. The findings of the book shed light on the complex linkages between military spending and the profit rate by considering the role of countries in arms trade.
Offering a Marxist perspective and an emphasis on quantitative analysis, The Economics of Military Spending will be of great interest to students and scholars of defence and peace economics, as well as Marxist economics.
"In this fine essay on the economic effects of military spending, Adem Elveren presents a wide-ranging review of Marxist, liberal and neoclassical perspectives alongside an extensive econometric investigation. This work should invigorate debate on the role of the military, a dangerous topic that has received too little critical attention in recent years.", James K. Galbraith, The University of Texas at Austin, USA
"This important book offers a sophisticated analysis of the determinants of military spending and its economic impact. Adem Elveren provides a comprehensive review of the extensive theoretical and empirical literature, with a particular emphasis on Marxist debates, before turning to a rigorous original econometric analysis of its impact on the rate of profit.", Simon Clarke, Emeritus Professor of Sociology, University of Warwick, UK
"The book is a welcome addition to the defence economics literature. It addresses a theme that has not received the attention it deserves in the relevant literature. It demonstrates how Marxist analysis can be applied to contemporary issues and offer much needed and valuable insights from a non-mainstream perspective. An essential read for students and scholars working on defence economics.", Christos Kollias, University of Thessaly, Greece
"This timely book provides a valuable overview of the effect of military spending on economic growth and the degree to which this results from its impact on profits. It is an impressive piece of work that combines modern empirical analysis with heterodox, particularly Marxian, theory to great effect.", J Paul Dunne, Professor of Economics, University of Cape Town, South Africa
"In breadth and depth of coverage of its subject matter, and contribution in its own right, this volume is second to none for the student of military expenditure and its causes and effects. The expert will be able to gain from it all, whilst the general reader will find much from which to learn.", Ben Fine, Emeritus Professor of Economics, School of Oriental and African Studies, University of London, UK
"Adem Elveren has filled an important gap in our knowledge of military spending. Offering a comprehensive overview of the principal attempts to explain how it affects both economic performance and welfare, it subjects these theories to rigorous quantitative testing. Especially novel is the integration of Galbraith’s astute analyses of the Military Industrial Complex with Marxist work, and a long-overdue study of how military spending impacts the profit rate.", Alan Freeman, University of Manitoba, Canada
Foreword by Ron Smith
2. Economic Models of the Military Expenditure-Growth Nexus
3. Military Keynesianism and the Military-Industrial Complex
4. Marxist Crisis Theories
5. The Effect of Military Expenditure on Profitability in Marxist Theories
6. An Econometric Analysis of the Nexus of Military Expenditure and the Profit Rate
7. Analysis of the Nexus of Military Expenditure and Profit: Country Cases
Appendix A: Panel Studies (dependent variable is PWT Profit)
Appendix B: Time Series Analyses
Appendix C: Toda-Yamamoto Procedure Results