Military Expenditure and Economic Growth: The Case of Sri Lanka

Abstract

Studies concerning military expenditure have increased rapidly in recent years. The results of these studies concerning the impact of military expenditure on economic growth have been contradictory. The argument as to whether military expenditure accelerates or hampers the economic growth of a country continues. The objective of the present study is to examine the impact of military expenditure on the economic growth of Sri Lanka. As Sri Lanka is facing a growing problem of increased military expenditure due to ongoing communal troubles, it makes an appropriate case to examine. Conventional methods have been used in this study to analyse the relationship between military expenditure and economic growth in Sri Lanka. The results of the study show a negative impact of military expenditure on the economic growth of the country.