Defence Expenditures Effects on Economic Growth; The Case of Iran

Faṣlnāmah-i Pizhūhish/hā-yi Iqtiṣādī-i Īrān, Mar 2007

Facing foreign threats in the region, Iran has been increasing its defence expenditures, for the past three decades. In this paper, we study the impact of the Iranian defence expenditures on the economic growth for the period 1971-2003. We use the Keynesian macro model to show explicitly the relationship between the defence expenditures and the economic growth. Our results indicate that the defence expenditures in Iran have had negative effects on the saving and the balance of trade, and therefore, on the economic growth.

Article PDF cannot be displayed. You can download it here:

https://ijer.atu.ac.ir/article_3654_3ff1728547e90a19351b43af63d680c0.pdf

Defence Expenditures Effects on Economic Growth; The Case of Iran

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ghhifcdde 8%, % ' ( (& % # :<1 `15 E1 a )& b , ( & %57( `(15 . +> & E1 8 5& % lke I 9 U $ geicfgejjS \ ikcS E( 5 U % ggkgS 591 ' & N %57 `15 . + X , U % ekiS ! % m /E1 U % gdkcS ' , U % N %57 O J . <+ & % % %, ; ! b" & ` % ' % ' .1% F %7 ) & + n\+ ' , E1 6 5 ) 1 , A 2 8 !> +8 $o & <Q , Y + / 7D& 5b<& % n $% , 8 . & < Q% 1 , RX, )* / $ & % %5; & ;E . p' $% & # ! " p ]5 5 +4 / >/? @ =# %' ( \1 %5< 6 f E 9 5 ' 5+ # F #! ' &% 9(15+ , $% O & ) %5N & E , '5 Z ' 5+ . % / 1% & 0 ($ ( ( ' 7 8 $ Y 1% & = / % q& & ; 65+ 5; 4r(6 (& R % & `b+ ` $ @ !% b & , 1 1 , ! b" ' 5& &F X )& N v 1u cddt I 1 n% Q ? 1 & / % s b+% q& % ' ( R % E 55 E( 9 5 , 8 ($ + & . R cddl I 1 Y% <Z e & Eb \ cddt I 1 I, e ( ' & . 9& : % 8 5& %> '5 * wedd I 9 ' # \ cddt I 1 % /g E( 5 ( N %57( (# ( ( :( % . E1 %> '5 * egctt I 9 '2 # :% '5( * hhcS ( U%> '5( * geeeS x U%> '5 * gwddS & 8 ! % U%> '5 * eddjS /E1 +> & U%> '5 * cteS ' , U%> '5 * wciS & U%> '5 * jceS 0 U%> ! ! " / # $ % & '$%&( 12B ! A )( 5 . ($ ' ( % R ( % ' 5&> (& ) +8 /_E1 8 % % % ' ( A % E 9 5 *; ! & D %5 r 1u 8 Q . /E1 y0(1 % % ' ( (1 1 R % A 2 ! <+ 6% ; 9& % /E1 /E1 8 %&&( ! *- 2 * * ! .1 /.0 ! ,-. /.0 * * %&&' * ) 8, Q % %' 6% ; , *; 1 1 8 % + &E9 , % "P+ E + )* & ! " #$ ! * ) ) + * + ) ) z{ lh # $ ) % & %&&'4 3 %&&( 52 + ,, 6 7 F ( , ( (& E; X. & % ' E 9 5 5b<& <6 % . & % Y ; EM E F # b 1 1 R % , |E1 8 <& % @ , % ;1R %' & ;a :/ 5($ ? ] # FD& % % rQ 1 & ; 65+ ) & , E1> & ' V ' / ( N \ ' % % *; C ; 5+ % # :<1 , ,% ' 5+ 1% % . # :<1 E1 8 $ 8 ' 7 UcS I, 6 % A Z ge (& (& & gete I 1 % (# F % lke & * + T 6 . 9& I 1 R 9 gewdI 1 % ' , 8 5& % I ( + gewi I (1 % % ckt & %5 r :<1 ) 9+ E1 1 ], $ & ' /E1 . % ckc :<1 gejw I 1 % , 8 X Q~, . 9& /E1 8 } ; 5; & % %5J & E1 # F # :<1 9& & geid I 1 . ' * 1 1 ! <+ / 5$ ) $ % % ekc I 9 <1 geic I 1 % , % ekl & & & <1 I 1 ' % A @ ? > 9.7 : fm fgke eki € ekc ckh gike m• egkl ghkl • jkc fdkt dkh ; < 2 fhkc fwkj gekww hkei ftkce fekii ƒ $& ' ( +' ( +' ( +' ( . !%5 =5 7 73 8 _v _z _m tkcg _z _{ ‚ _m & rXR % _vzv _vz€ _vz• _vz‚ b+% /g . " 8 /9:; 45 6 7 12C 7 8 fgki fgkj fdklw fdkle fdkle fdkl fdkdl fdkde fdkde f{…{m fdkdg fdkddt fdkdc fdkdc v ekg gkic gklj gkt gklh gkje m gkhi ckc gki gkhh m gkw cckh ghkh glkw glki gwkl cckl clke cekj cckg cgkg gwkt gwkl glkw ggkg dkc dkjh f€ gkw ikj gdki cke dkhh dklj ikc ckj ckwj lkc ekh fgeke fike fjkj ekt ggkt ikt lki dkt m dkgt ekt ekg cwkh glkj /H* D . / I1 fhkti flkei fdkdw tkli gekw gcktl wkwg ckgh lkg gkjj tkgt lkjc tkw wkg tkht lke v ckt m m m ckc ckt ckc ekc ekl m ekc % 2 1 ' /geicfgewi ' * 4 ' \1 /geicfgewi . +, n% Q ' \1 0 1 ' 01(+ 2.3 ,, %5< 6 %5< 6 mv mm m• _• ‚ m{ mv _‚ _z gckw ggkl gtki gtkw gtkc % 2 /g % % 6 7 R & /c R & /e ! b1 , $% ‡ † 4 . . WX :<1 † 1 . # 3 :<1 † 7 . U M 3S % 6 4 . + :<1 † #* _vz• _v„{ _v„• _v„‚ _v„• _v•{ _v•z _v•„ _v•• _v•‚ _v•• _v‚{ _v‚_ _v‚m # 9, 1 /t Y%5+ ‡ † :<1 † 5 $% ‡ † 6 † ) D 4 E =, F <; . G =,+# % ( #% 5( 4 (D ( I ƒ % 56, # }5 ; % M* D + I ' 5+ ]# 5 & s5& 5 I , + * + E& % < X % _ ( I ( , + * (+ E& % < ,% & -+ ! 9 0 ˆ*3 / - Q '2 % % > & % 5 + ,/ 8 $ ]# 5 * , # 9 '8 " + 9,('51 % V % `15+ I : + 9 12H ! A %5(( (& % % % / ( @* / (( , # ' ((& % ((@ )(( 5 ((@ ' (( W‰((1 , E((1 8 (($ )(( A+ + * (+ E& % I '4 / + ;.( 5 , '* + ,(5 & '% + 2 ( I ' / n QR + 1 5+ <1 # 9 , %&B N . 8 M1 Š + %57 , & + * + E& % 56, %5 % + # Q % & ' 5 & < + ,% ,% '@ + (? * '5 < = + ; ( A - '5 < = > ? + ; ( 56 , A ' (@ , '8 A + (W (#% , '@ > 5 = " = + 9(W ( A , ? ( * 5( 6%56 )(& % / ( 8 %,2 E(1 (& ' ( 5 , ( ‹ (+ (# & % 9 0& % '4 + 9(5((+% .> , '@ : + 9(?5( 5X5‰ ' :+ + 9( 5( < ( S ! (9 0 Y, 8, (Q / ( 8 %, E1 & %57 , & + * + E& % . 7 ( + +% (b (& / ( % + # 1 1) 5 N X & U] # (& 9(1 , 8 % N % U R + 1 f 1 1 f S # & "u ) 5 & -+ ) * + % <2 . 8 M 1 '@ : >4 :+ (5(+% .> , W 5X5‰ / % ? (( , % , W A 5(( 2 '-/ " + 2(? (( %,2 '@ + .+ 9(? (( * ( (& ( + (@ '= + (W A 5( 2 , '= > @ /" + ,( / 8 ) * + , -+ % ' 5 # ( ( (D7 ? A9 , ^ % & Y ) +K 1I R . 8 M1 & ƒ 5 ^ % . !%5 & ' 5+ % I /_E1 8 ' ' # Y5- 3 + + E9 6 ! " ' '7 & .- + + >5 " +1 ( 1 9 , *; C ; 5+ '2 % Œ % % -+ . 5 :<1 E, /E1 M , & # ,T 6! " ' '7 & ( (& s5(& ( ( N ? 1 & , 5$ 45 5 ˆ ( B* (1, (& *• / $ & s b+% % * 2% & Ž\ 1 %57 R . 56, & /E1 ) * + )& ' )( - % , E& " b + # B6 5& 2% F # & 8 # / m 5$ : + + + ;, .- Œ %57 & ' @ @ & > '5 & ] # # •501 5 9 , *; C ; 5+ Eb• 1% E . ; B6% & :<1 F ˆ65 - =+ 2 . " 8 /9:; 45 6 7 12I s (b+% '5( # I & (# B( :<(1 & M !%5 & )ˆ ,% % N ' %5 % Œ ' 5 & ' (E 9 6 ' + ;9( Q B9 0 ? 1 & / $ & $ / $& # & Eb• " % ,% % N 5$ # 3 ' %, (& s5(& 5 B 8 ' 7 I % '7 (E , (& ' 5(+ ( % ( Œ ( / $ & M E \ % Œ ˆ ,% % N , E1 ] # _ # &E # '5 ' 5&. & % '#*( % -+ B . 5 :<1 /E# Q N % A + (1 , 1 1 ) 5 y 7+ & /E1 Y5*9 , :<b '2 E \ , WA9 % m .- Œ , 8 M _v‚mf_vz{ < 1 I5J % # B % < F (# 9 (& . (- F7( ( )6 , UgewifgethS T( 6 ! (" # (Q (N % & B /E1 8 $ (# E , Z Q / 8 $ 8 - Q I % %57 & ' @ @ & Y5! " ' '7 ( , ' ( %50 ( , E ( 5( E( 9 , R( ( % ) +]# & 7& . (1% , 8 (1 ( & bJ R E1 9& $ % <‘ ' : >5 "+ ( )(b . % B E \ ' 5+ @ !% b & / $ & $ 56, # 3 , # E, : M ( , ($rQ (# ( ( (" 65+ & ' (% M, Œ / # / E1 8 $ 4 D v CD7 , 9+ & & s5& ! <9+ F 5 . 6 G =,+, ( B( 9 (& 8,\( /E(1 ( 9 % <Z ) $ 9 0 % #% % & ' !> 9 I ( 8 $ %,2 & % -+ B . 5 9 , . WX 9 $% B 9 | $ CD7 )b % # ƒ $ & ) a • $ & < 2 ! D7 . 6K ? =JK 5+ @ & %5 r q& + % /E1 ' + + ( 9 1 5+ q& + . # Q & $% B 9 € ( 5+ q& (+ . 8 M (1 (& / E(1 ’5( 5 A+ ˆ ( ,% , 8 '7 1 @ & z ($% ‡ 5+ q& + $% ‡ ' 5+ E1 0; $% ‡ % # ) 9+ ?\Q f4 , U @7( !\ ( + % *3 ($ 9+S 1,% , $% ‡ 1 565 # " * : C D /ghht qb ' . >1 + ; ) DD3 : /e 122 ! A Š( J . ( ( (1 $% ‡ / %,2 & % % rQ "P+ $% ) .&% Œ P+ *; . WX % (# ( ( :<(1 / 6% (; (1 ' 6 Š J . , '1( 5$ /E(1 ( #% % ( (& I ( % # <-+ qb ! " ' %,2 E1 & & (* %5J & / Q & % % ’5 5 A+ ! % , . $ Q # ˆ ' b6 & s5& ! " 1 ( ($% E( # ‘ . > (& y0(1 & ' 1% I % +> & 1 2% & %57 -2 . ƒ ' 7 . )A$ & % $% 0& % ' 5+ $& ' + + /E1 8 $ ^ % UcSI, 6 % < 2 & s5& % 2 , 5$ + + ( H 9+ $% ‡ ? 1 & Œ + N . M K ? =L ƒ $& ($% ‡ ( ! ( Œ+ (...truncated)


This is a preview of a remote PDF: https://ijer.atu.ac.ir/article_3654_3ff1728547e90a19351b43af63d680c0.pdf
Article home page: https://doaj.org/article/8fc2e3f7752346b6bbce36ea9cd79c89

Mohammad Hosein Hasani, Samad Aziznejad. Defence Expenditures Effects on Economic Growth; The Case of Iran, Faṣlnāmah-i Pizhūhish/hā-yi Iqtiṣādī-i Īrān, 2007, pp. 193-212, Volume 30,