Cover IMF Working Papers
Corruption and Military Spending
Author:
International Monetary Fund
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Series:
IMF Working Papers
Volume/Issue:
Volume 2000: Issue 023
Language:
English
Publication Date:
01 Jan 2000
DOI:
https://doi.org/10.5089/9781451844030.001
ISBN:
9781451844030
ISSN:
1018-5941
Pages:
31
Keywords:
WP; government spending; military spending; spending; Corruption; panel data; conflict-country dummy; procurement activity; IMF program country; utility function; Defense spending; Total expenditures; Global
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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Anecdotal evidence relates corruption with high levels of military spending. This paper tests empirically whether such a relationship exists. The empirical analysis is based on data from four different sources for up to 120 countries in the period 1985–98. The association between military spending and corruption is ascertained by using panel regression techniques. The results suggest that corruption is indeed associated with higher military spending as a share of both GDP and total government spending, as well as with arms procurement in relation to GDP and total government spending. This evidence indicates that defense spending can be considered for constructing governance indicators.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund
Volume 2000: Issue 023