Is the Tradeoff between Defense Spending and Social Welfare an Illusion? Some Evidence from Tropical Africa

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Periodical article

Title:	Is the Tradeoff between Defense Spending and Social Welfare an Illusion? Some Evidence from Tropical Africa
Author:	Gyimah-Brempong, Kwambena
Year:	1989
Periodical:	Eastern Africa Economic Review
Volume:	5
Issue:	2
Period:	December
Pages:	74-90
Language:	English
Notes:	biblio. refs., ills.
Geographic terms:	Subsaharan Africa Africa
Subjects:	public expenditure defence social policy Economics and Trade Military, Defense and Arms Economics, Commerce social welfare Military expenditure economic development
Abstract:	This paper employs a utility maximization two-stage budgeting framework and a simultaneous equation model to investigate budgetary trade-offs between defence and social welfare programmes in sub-Saharan Africa from 1973 to 1983. Using a W3SLS estimation procedure and cross-national time series data, the author finds a significant trade-off between defence and social services in budgetary allocation, with changes in defence budget share having a negative effect on the budget share of social services, while the reverse is not true. The author also finds that the pattern of budgetary allocation is influenced by external aid; external aid tends to increase defence budget share. Moreover, the oil-exporting African countries tend to spend a larger share of their budgets on defence than their non-oil-exporting counterparts. Finally, the occurrence of military coups increases the budget share of defence in tropical African countries. Bibliogr., notes, ref.