Investment in research and development compared to military expenditure: is research worthwhile?

Biswas, Raaj Kishore and Kabir, Enamul and Rafi, Refat Bin Reza (2018) Investment in research and development compared to military expenditure: is research worthwhile? Defence and Peace Economics. ISSN 1024-2694

Abstract

Both research and development (R&D) and military expenditure are pivotal areas for any country’s economy. However, most countries tend to spend more on military because of global insecurity and power politics. Nevertheless, this study shows the merit of R&D investment and how it contributes to the national human capital. An analysis was undertaken on the gap between R&D and military expenditure considering the Human Development Index (HDI) and Gross Domestic Product (GDP) of 76 countries for a period of 15 years (2000–2014). Mixed effect models were applied to adjust the effect of six different continents. The results showed that HDI has a positive bi-directional significant relationship with higher R&D investment. National spending on R&D builds human capital, which in turn contributes to public development over the years, unlike military expenditure that only marginally contributes towards GDP and makes no contribution to HDI.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Published online: 28 May 2018. Permanent restricted access to ArticleFirst Version, in accordance with the copyright policy of the publisher.
Faculty/School / Institute/Centre: Current - Faculty of Health, Engineering and Sciences - School of Agricultural, Computational and Environmental Sciences
Date Deposited: 01 Nov 2018 01:49
Last Modified: 16 Nov 2018 03:22
Uncontrolled Keywords: HDI; GDP; human capital; investment gap; research; defense; investment; spending; development; military
Fields of Research : 14 Economics > 1499 Other Economics > 149999 Economics not elsewhere classified
Identification Number or DOI: 10.1080/10242694.2018.1477235
URI: http://eprints.usq.edu.au/id/eprint/34968

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