The Effect of Military Spending on Economic Growth: A Gendered Analysis

This study investigates the relationship between military spending, economic growth, and gender inequality, drawing on three bodies of scholarship. First, while some literature shows military expenditure may boost economic growth by increasing aggregate demand, it can also hinder growth by reducing the economy’s productive capacity over time. Second, higher military spending is linked to greater gender inequality, as it may divert resources from social expenditures benefiting women and may reinforce their subordinate status. Third, both neoclassical and feminist economics explore how gender (in)equality and economic growth influence each other. Using an augmented Solow growth model, the Gender Inequality Index (GII) from UNDP, and the Social Institutions and Gender Index (SIGI) from OECD, this study analyzes data from eighty countries (2000–19). Findings indicate that military expenditure negatively affects economic growth and gender equality, with the negative impact on growth being larger when considering gender inequality.HIGHLIGHTSThis study empirically links military spending, gender inequality, and growth.Military expenditure affects economic growth through multiple channels.The study examines evidence from eighty countries using SEM and SUR estimators.Higher military burdens are associated with greater gender inequality.Reducing gender inequality may mitigate the growth costs of militarization.