IN THE SEARCH FOR DEFENSE SPENDING IMPACT: LITHUANIAN CASE STUDY, 2009–2018
IN THE SEARCH FOR DEFENSE SPENDING IMPACT: LITHUANIAN CASE STUDY, 2009–2018
Author(s): Donatas PalavenisSubject(s): National Economy, Economic history, Economic policy, Security and defense, Military policy, Economic development, Transformation Period (1990 - 2010), Present Times (2010 - today)
Published by: Teaduste Akadeemia Kirjastus
Keywords: Emile Benoit; GDP; FDI; armed forces; security; security fluctuate factor;
Summary/Abstract: The aim of this study is to discuss nexus between defense spending and certain economic variables in Lithuania during 2009–2018. Considering the fact that there are no universal analytical tools for measuring defense expenditure nexus with economic growth, in this study, data comparison and correlation analyses are conducted with key economic variables being interpreted. Increased defense spending, successful reforms in the Armed Forces, and NATO/EU activities contributed to the security of Lithuania and provided positive stimulus for the national economy. The term security fluctuate factor, describing the yearly security investment responsiveness effect on the state economy, is offered in the study for the first time. The main results support nexus findings between defense spending and economic growth as they indicate positive correlation between distinctive state economic variables and extensive defense spending in Lithuania, especially in the post-2014 period.
Journal: TRAMES
- Issue Year: XXIV/2020
- Issue No: 4
- Page Range: 567-588
- Page Count: 22
- Language: English