01962cas a2200265 a 4500 AALejournalIMF006878 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451847338 1018-5941 BD-DhAAL BD-DhAAL Knight, Malcolm. The Peace Dividend : Military Spending Cuts and Economic Growth / Malcolm Knight, Delano Villanueva, Norman Loayza. Washington, D.C. : International Monetary Fund, 1995. 1 online resource (40 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Although conventional wisdom suggests that reducing military spending may improve a country's economic growth performance, empirical studies have produced ambiguous results. This paper extends a standard growth model and estimates it using techniques that exploit both cross-section and time-series dimensions of available data to obtain consistent estimates of the growth-retarding effects of military spending via its adverse impact on capital formation and resource allocation. Model simulations suggest that a substantial long-run 'Peace Dividend'--in the form of higher capacity output--may result from: (i) markedly lower military expenditure levels achieved in most regions during the late 1980s; and (ii) further military spending cuts that would be possible in the future if a global peace could be secured. Mode of access: Internet Loayza, Norman. Villanueva, Delano. IMF Working Papers; Working Paper ; No. 1995/053 Full text available on IMF http://elibrary.imf.org/view/journals/001/1995/053/001.1995.issue-053-en.xml IMF e-Library