Analysis of the Global Defence Budget and Its Economic, Social and Environmental Impacts

Manchanda, Namya; Kalra, Ananya; Singh, Harshul; Padhi, Susri

Research Article (Vol. 3(4)) 2021

Analysis of the Global Defence Budget and Its Economic, Social and Environmental Impacts

South Asian Research Journal of Humanities and Social Sciences

Abstract

The global defence budget forms a very important aspect of a country's spending and its whole mechanism. We observe an increasing trend in the global defence budget. This paper aims to examine this trend, the reasons for the same and deeply analyse the impact on the economy, society and the environment of a country. Data extracted from the World Bank database for three countries - the US, India and Nepal have been used to understand the economic impact of these trends by performing simple linear regression analysis, taking military expenditure as the independent variable and Gross Domestic Product (GDP) as the dependent variable. The paper also elucidates the issue of terrorism and the dominance of the developing countries in the arms race leading to unwanted social impacts on various government sectors, crowding out their allocation of resources. In conclusion, the paper talks about the negative aspect of the rising global defence budget and some policy suggestions such as peace economy to serve as alternatives because a war not only brings atrocities but the aftereffect of destruction is unbearable.

Keywords: Global Defence Budget; Regression Analysis; Military Expenditure; Gross Domestic Product; Terrorism; Peace Economy

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Record

Title

Analysis of the Global Defence Budget and Its Economic, Social and Environmental Impacts

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South Asian Research Journal of Humanities and Social Sciences

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420:sarjhss

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Active

Content Type

Research Article

Resource Type (DataCite)

JournalArticle

SEIPID

420:sarjhss:2021n28

Language

English

Publication Date

24 Jul 2021

Record Entered On

10 Nov 2026

Last Updated

10 Nov 2026

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Active

Metadata Source

Registrant

Publication

Published in

South Asian Research Journal of Humanities and Social Sciences

Publisher

SAR Publication

ISSN

2664-4002

eISSN

2664-6714

Volume / Issue

3 (4)

Pages

166-175

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Corresponding

Dates

Submitted

9 Jun 2021

Accepted

14 Jul 2021

Subjects

Business, Economics and Management

Economics

Social Sciences and Humanities

Peace and Conflict Studies

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Open access

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CC BY-NC 4.0

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https://sarpublication.com/articles/589/

References 43

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 Abdel-Khalek, G., Mazloum, M.G., El Zeiny, M.R.M. (2019). Military expenditure and economic growth: the case of India. Rev. Econom. Political Sci., 5(2), 116-135.
 Acheson, R., & Fihn, B. (n.d.). Military spending. Reaching Critical Will: A project of the Women‟s International League for Peace and Freedom.
 Antonakis, N. (1997). Military expenditure and economic growth in Greece, 1960-90. Journal of Peace Research, 34(1).
 Archer, C., & Willi, A. (2012). Opportunity costs: Military Spending and the UN‟s Development Agenda A view from the International Peace Bureau. International Peace Bureau.
 Aziz, M. N., & Asadullah, Mohammad, N. (2016). Military spending, armed conflict and economic growth in developing countries in the post-cold war era. CREDIT Research Paper, No. 16/03, The University of Nottingham, Centre for Research in Economic Development and International Trade (CREDIT), Nottingham.
 Bagchi, A. (2006). India's Defence Budgeting: Lessons Not Learnt. Economic and Political Weekly, 41(52), 5321-5324. Retrieved June 5, 2021, from http://www.jstor.org/stable/4419077
 Ball, N. (1983). Military expenditure, economic growth and socio-economic development in the Third world. Nordic Journal of Latin American Studies, Vol. XII: 1-2, 5-20.
 Batchelor, P., Dunne, J. P., & Saal, D.S. (2000). Military spending and economic growth in South Africa. Defence and Peace Economics, 11(4).
 Benoit, E. (1972). Growth effects of defense in developing countries. International Development Review, 14.
 Bonn International Centre for Conversion (BICC), Military spending and the UN`s development agenda.
 Deger, S., & Sen, S. (1990). Military security and the economy: defence expenditure in India and Pakistan. The Economics of Defence Spending, Routledge, London and New York, NY.
 Deger, S., & Smith, R. (1983). Military expenditure and growth in less developed countries. Journal of Conflict Resolution, 27(2).
 Food and Agricultural organisation. (2015). Achieving Zero Hunger: Combining social protection with pro-poor investments.
 Glaser, C, L. (2000). The Causes and Consequences of Arms Races. Annual Review of Political Science, 3.
 Golan, G. (1997). Militarization and Gender: The Israeli Experience. Women's Studies International Forum
 Gyimah-Brempong, K. (1992). Do African Governments Favor Defense in Budgeting? Journal of Peace Research, 29(2), 191–206.
 Hartley, K. (1995). Defence and the environment: An economic approach. GeoJournal 37, 277–282
 Heinecken, L. (2015). The military, war and society: The critical need for sociological engagement. Journal of Military Studies, 43(1), 1–16
 Hong, L. F., Wei, L., & Peter, C. Coyte. (2018). Do Military Expenditures Crowd-out Health Expenditures? Evidence from around the World, 2000–2013, Defence and Peace Economics
 Jaaved, A. (2020). Adverse socio-economic impact of India‟s rising military expenditure. Modern Diplomacy.
 Kaufman, J.P. The Social Consequences of War: The Social Development of Four Nations. Armed Forces & Society.
 Korkmaz, S. (2015). The Effect of Military Spending on Economic Growth and Unemployment in Mediterranean Countries. International Journal of Economics and Financial Issues, 5. 273-280.
 OECD. (2015). Report on Climate Finance.
 PALME, O. (1982). Military spending: the economic and social consequences. Challenge, 25(4), 4-21
 Pant, H. V. (2021). India‟s Defence Budgeting Strives to Chart a New Course. Observer Research Foundation.
 Paul, R. Gregory. (1974). Economic growth, US defence expenditures and the Soviet defence budget: A suggested model, Soviet Studies, 26:1, 72-80
 Pradhan, G. (2019). Nepal‟s Civil War and Its Economic Costs.
 Rahman, T., & Siddiqui, D. A. (2019). The Effect of Military Spending on Economic Growth in the Presence of Arms Trade: A Global Analysis. SSRN
 Raju, M.H., Ahmed, Z. (2019). Effect of military expenditure on economic growth: evidences from India, Pakistan and China using cointegration and causality analysis. Asian j. Ger. Eur. stud. 4, 3.
 Sekine, M. H. (2020). Increasing Turkey's Military Expenditure At What Cost. Australian Institute of International Affairs.
 SIPRI, Yearbook. (2020). Armaments, Disarmament and International Security. Oxford University Press.
 SNIDER, L. (1990). The Political Dimensions of Military Spending and Debt Service in Southeast Asia. Contemporary Southeast Asia, 11(4), 278-305.
 Sustainable Development Solutions Network. (2015). Investment Needs to Achieve the Sustainable Development Goals: Understanding the Billions and Trillion.
 Tashjian, Y. (2021). How can Armenians overcome their national crisis?
 The Global Campaign on Military Spending (GCOMS), Defund the military.
 The Stockholm International Peace Research Institute (SIPRI), the opportunity cost of world military spending.
 Tiwari, A., & Tiwari, A. (2010). Defence Expenditure and Economic Growth: Evidence from India. Journal of Cambridge Studies
 UNESCO. (2015). The Global Monitoring Report.
 Unicef. (1996). The state of the world's children.
 Wessells, M. (1998). Children, Armed Conflict, and Peace. Journal of Peace Research, 35(5), 635-646.
 When Countries Increase Their Military Budgets, They Decrease Public Health Spending. (2019). Peace science digest
 Witt, J. (2014). Studying the Causes, Conduct, and Consequences of War: The Society for Military History. Tractus Aevorum.

[1]  Abdel-Khalek, G., Mazloum, M.G., & El, Zeiny, M.R.M. (2020). "Military expenditure and economic growth: the case of India", Review of Economics and Political Science, 5 2, 116-135

[2]  Abdel-Khalek, G., Mazloum, M.G., El Zeiny, M.R.M. (2019). Military expenditure and economic growth: the case of India. Rev. Econom. Political Sci., 5(2), 116-135.

[3]  Acheson, R., & Fihn, B. (n.d.). Military spending. Reaching Critical Will: A project of the Women‟s International League for Peace and Freedom.

[4]  Antonakis, N. (1997). Military expenditure and economic growth in Greece, 1960-90. Journal of Peace Research, 34(1).

[5]  Archer, C., & Willi, A. (2012). Opportunity costs: Military Spending and the UN‟s Development Agenda A view from the International Peace Bureau. International Peace Bureau.

[6]  Aziz, M. N., & Asadullah, Mohammad, N. (2016). Military spending, armed conflict and economic growth in developing countries in the post-cold war era. CREDIT Research Paper, No. 16/03, The University of Nottingham, Centre for Research in Economic Development and International Trade (CREDIT), Nottingham.

[7]  Bagchi, A. (2006). India's Defence Budgeting: Lessons Not Learnt. Economic and Political Weekly, 41(52), 5321-5324. Retrieved June 5, 2021, from http://www.jstor.org/stable/4419077

[8]  Ball, N. (1983). Military expenditure, economic growth and socio-economic development in the Third world. Nordic Journal of Latin American Studies, Vol. XII: 1-2, 5-20.

[9]  Batchelor, P., Dunne, J. P., & Saal, D.S. (2000). Military spending and economic growth in South Africa. Defence and Peace Economics, 11(4).

[10]  Benoit, E. (1972). Growth effects of defense in developing countries. International Development Review, 14.

[11]  Bonn International Centre for Conversion (BICC), Military spending and the UN`s development agenda.

[12]  Deger, S., & Sen, S. (1990). Military security and the economy: defence expenditure in India and Pakistan. The Economics of Defence Spending, Routledge, London and New York, NY.

[13]  Deger, S., & Smith, R. (1983). Military expenditure and growth in less developed countries. Journal of Conflict Resolution, 27(2).

[14]  Food and Agricultural organisation. (2015). Achieving Zero Hunger: Combining social protection with pro-poor investments.

[15]  Glaser, C, L. (2000). The Causes and Consequences of Arms Races. Annual Review of Political Science, 3.

[16]  Golan, G. (1997). Militarization and Gender: The Israeli Experience. Women's Studies International Forum

[17]  Gyimah-Brempong, K. (1992). Do African Governments Favor Defense in Budgeting? Journal of Peace Research, 29(2), 191–206.

[18]  Hartley, K. (1995). Defence and the environment: An economic approach. GeoJournal 37, 277–282

[19]  Heinecken, L. (2015). The military, war and society: The critical need for sociological engagement. Journal of Military Studies, 43(1), 1–16

[20]  Hong, L. F., Wei, L., & Peter, C. Coyte. (2018). Do Military Expenditures Crowd-out Health Expenditures? Evidence from around the World, 2000–2013, Defence and Peace Economics

[21]  Jaaved, A. (2020). Adverse socio-economic impact of India‟s rising military expenditure. Modern Diplomacy.

[22]  Kaufman, J.P. The Social Consequences of War: The Social Development of Four Nations. Armed Forces & Society.

[23]  Korkmaz, S. (2015). The Effect of Military Spending on Economic Growth and Unemployment in Mediterranean Countries. International Journal of Economics and Financial Issues, 5. 273-280.

[24]  OECD. (2015). Report on Climate Finance.

[25]  PALME, O. (1982). Military spending: the economic and social consequences. Challenge, 25(4), 4-21

[26]  Pant, H. V. (2021). India‟s Defence Budgeting Strives to Chart a New Course. Observer Research Foundation.

[27]  Paul, R. Gregory. (1974). Economic growth, US defence expenditures and the Soviet defence budget: A suggested model, Soviet Studies, 26:1, 72-80

[28]  Pradhan, G. (2019). Nepal‟s Civil War and Its Economic Costs.

[29]  Rahman, T., & Siddiqui, D. A. (2019). The Effect of Military Spending on Economic Growth in the Presence of Arms Trade: A Global Analysis. SSRN

[30]  Raju, M.H., Ahmed, Z. (2019). Effect of military expenditure on economic growth: evidences from India, Pakistan and China using cointegration and causality analysis. Asian j. Ger. Eur. stud. 4, 3.

[31]  Sekine, M. H. (2020). Increasing Turkey's Military Expenditure At What Cost. Australian Institute of International Affairs.

[32]  SIPRI, Yearbook. (2020). Armaments, Disarmament and International Security. Oxford University Press.

[33]  SNIDER, L. (1990). The Political Dimensions of Military Spending and Debt Service in Southeast Asia. Contemporary Southeast Asia, 11(4), 278-305.

[34]  Sustainable Development Solutions Network. (2015). Investment Needs to Achieve the Sustainable Development Goals: Understanding the Billions and Trillion.

[35]  Tashjian, Y. (2021). How can Armenians overcome their national crisis?

[36]  The Global Campaign on Military Spending (GCOMS), Defund the military.

[37]  The Stockholm International Peace Research Institute (SIPRI), the opportunity cost of world military spending.

[38]  Tiwari, A., & Tiwari, A. (2010). Defence Expenditure and Economic Growth: Evidence from India. Journal of Cambridge Studies

[39]  UNESCO. (2015). The Global Monitoring Report.

[40]  Unicef. (1996). The state of the world's children.

[41]  Wessells, M. (1998). Children, Armed Conflict, and Peace. Journal of Peace Research, 35(5), 635-646.

[42]  When Countries Increase Their Military Budgets, They Decrease Public Health Spending. (2019). Peace science digest

[43]  Witt, J. (2014). Studying the Causes, Conduct, and Consequences of War: The Society for Military History. Tractus Aevorum.

Analysis of the Global Defence Budget and Its Economic, Social and Environmental Impacts

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