Assistant Professor, Resistance Economics Center, Faculty of Management and Planning, Imam Hussein Comprehensive University, Tehran, Iran
Abstract
Iran's location in the sensitive and strategic regions of the Middle East faces security threats from some foreign countries. On the other hand, the suspicion of the high share of military expenditures in the GDP and claiming the negative impact of military spending on the country's economy, made it necessary to compare budget allocation to the military sector of the Islamic Republic of Iran with peripheral security environment countries and the impact of military spending on macroeconomic variables in Iran, including economic growth is of particular importance. The required data is collected by the library method from the sources of the World Bank and Cipri. An analysis of the five indicators of the military expenditures shows that the military expenditures of the Islamic Republic of Iran over the last three decades, despite many regional and global threats, compared to all countries that do not have similar security problems, It has been less. Then, the impact of military expenditures on the economic growth of the Islamic Republic of Iran between 1990and 2019 was investigated by the analysis Autoregressive Distributed Lag (ARDL). The result of the long-term estimate of the estimated model explained that in addition to the positive effect of this effect in the studied years, 0/79% of changes in economic growth of the Islamic Republic of Iran are justified by changing the variable amount of military spending to GDP. In other words, the growth of the Islamic Republic of Iran's military costs as a flagship country of resistance has not had a negative impact on its economic growth; While the military cost of the Islamic Republic of Iran has been the lowest compared to most countries around its surroundings.
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