MILITARY MANAGEMENT QUARTERLY

MILITARY MANAGEMENT QUARTERLY

The impact of economic security and military expenditures on Iran's economic growth

Document Type : Research Paper

Authors
safiollah bakhshali 1
Mohammad Mahdi Maleki Karam Abad 2
1 Department of Economics and Accounting, Faculty of Management and Military Sciences, Imam Ali (AS) Officers University, Tehran, Iran.
2 Assistant Professor, Department of Management, Faculty of Command and Management, Imam Ali Officer University, Tehran, Iran.
10.22034/iamu.2025.2048920.3133
Abstract
In this article, the main goal is to examine the impact of economic security and military expenditures on Iran's economic growth. Given that military expenditures can have an impact on the country's economic growth through its influence on economic security and foreign direct investment, the interactive effects of military expenditures on economic security and the interactive effects of military expenditures on foreign direct investment on GDP growth have been examined. In this study, time series data for the period 1996 to 2022 were used using the ordinary least squares (OLS) regression method and the variables of military expenditures as a percentage of GDP, economic security (WGI) using the good governance indicators provided by the World Bank, and foreign direct investment (FDI). Jarque-Bera statistical tests were performed for the normality of the variables and the generalized Dickey-Fuller test for data reliability, as well as tests for serial autocorrelation, variance heterogeneity, and collinearity between the variables in the estimated model. The results of the econometric model estimate show that the effects of the variables of military expenditures, economic security, the interactive effect of military expenditures and foreign direct investment, as well as the interactive effect of military expenditures and economic security on Iran's economic growth during the study period are positive and significant.
Keywords
economic security
military expenditures
economic growth
foreign direct investment
Subjects
 
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