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Do U.S. military bases impair the economic growth of the host countries?

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  • Wang, Zhangping

Abstract

The construction of overseas military bases requires significant investment from the defence budget, but the literature is still divided on whether this has a negative impact on the host nation’s economy. This study empirically examines these issues using data from the most recent US defence budget, revenue statistics from military contractors, and financial information from US military bases in Japan. The results of the study suggest that the construction of overseas bases only harms the American economy if they are acquired through military occupation. On the other hand, building overseas bases that are secured through an alliance will support American economic growth.

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  • Wang, Zhangping, 2023. "Do U.S. military bases impair the economic growth of the host countries?," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 1655-1665.
    • Handle: RePEc:eee:ecanpo:v:80:y:2023:i:c:p:1655-1665
    DOI: 10.1016/j.eap.2023.09.014
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    References listed on IDEAS

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    1. Ortiz, Cristian & Alvarado, Rafael & Salinas, Aldo, 2019. "The effect of military spending on output: New evidence at the global and country group levels using panel data cointegration techniques," Economic Analysis and Policy, Elsevier, vol. 62(C), pages 402-414.
    2. repec:hal:spmain:info:hdl:2441/45gqdl5l4387f9b9l12gr2g3kt is not listed on IDEAS
    3. Haggag, Kareem & Patterson, Richard W. & Pope, Nolan G. & Feudo, Aaron, 2021. "Attribution bias in major decisions: Evidence from the United States Military Academy," Journal of Public Economics, Elsevier, vol. 200(C).
    4. Mehrling, Perry, 2001. "An Interview With Paul A. Volcker," Macroeconomic Dynamics, Cambridge University Press, vol. 5(3), pages 434-460, June.
    5. Hou, Benyufang & Liu, Hong & Wang, Sophie Xuefei, 2020. "Returns to military service in off-farm wage employment: Evidence from rural China," China Economic Review, Elsevier, vol. 59(C).
    6. Klomp, Jeroen, 2023. "Political budget cycles in military expenditures: A meta-analysis," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 1083-1102.
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    Cited by:

    1. Lee, Daeyong & Lee, Ju-Yeon & Josephson, Brett W., 2024. "Effects of bid protests against government agencies on firm performance: Role of interorganisational relationship," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 520-540.

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