Corruption and Military Spending

By S. Gupta, Luiz R. de Mello, R. Sharan. Social Science Research Network, 2001

516 citations recorded by the source corpus.

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.

Subfields: Economics and Econometrics, Sociology and Political Science

View Paper: https://www.semanticscholar.org/paper/d57e9839b1cbeb6c7ec67bddf9a5085f631497d1

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Citations in the corpus

What Determines Public Expenditure Allocations? A Review of Theories, and Implications for Agricultural Public Investment (2012, background): “For example, Gupta, de Mello, and Sharan (2001) find that lower governance quality and higher corruption 5 Harstad and Svensson (2011) uniquely study lobbying activities (discussed above) and corruptive activities in a joint framework.”
Corruption, Institutions, and Economic Development (2009, background): “…towards less productive activities (Mauro, 1998; Tanzi and Davoodi, 1998) or it creates ine¢ ciently large public sectors where resources that should have been used productively are wasted through rent seeking (Baldacci et al., 2004); and that it increases military spending (Gupta et al., 2001).”
Corruption, Growth and Political Regimes: Cross Country Evidence (2006, background): “In particular, empirical studies by Tanzi and Davoodi (1997), Mauro (1998) and Gupta et al. (2001) have shown that corruption alters the composition of government expenditure towards less productive activities and, therefore, that it is detrimental for growth.(2) Thus, one cannot tell much about the”
Corruption and distribution of public spending in developing countries (2006, background): “Davoodi, 1997, and Gupta et al., 2001 ), 6. military personnel as a percentage of total labor f orce ( Milit ) (Gupta et al., 2001), 7. the proportion of the central government’s debt in GDP ( Debt ), 8. the proportion of social contribution in GDP ( Soctax ) 9. the lack of global freedom ( Freedom”
Corruption, economic growth, and income inequality in Africa (2002, background): “Corruption decreases the quantity of and effectiveness of social programs that benefit the poor and divert these resources to programs that benefit the rich or provide opportunities for rent extraction, such as defense spending (Gupta et al. 2000).”
Corruption, Growth, and Income Distribution: Are there Regional Differences? (2006, background): “On the other hand, in other parts of the world, such as Africa, corruption is of the decentralized uncoordinated type with each bureaucrat acting as an independent contractor who demands a bribe at each stage of a multi-stage transaction. There are several possible reasons why decentralized, uncoord”
Economic Analysis of Corruption: A Survey (2003, background): “Gupta et al. (2001) show that countries that are perceived to be more corrupt tend to be spending more on the military as a fraction of GDP. Leite and Weidmann (2002) study the link between corruption and natural resource abundance.”
Growth, public investment and corruption with failing institutions (2006, background): “Corruption enhances the proportion not only of military spending (Gupta, Sharan, and de Mello 2000), but also of public services and order, fuel and energy, and cultural expenditure relative to education and health spending (Delavallade 2006).”