Authors
1 Assistant Professor in Economics, Alzahra University
2 saza291@yahoo.com
Abstract
Facing foreign threats in the region, Iran has been increasing its defence expenditures, for the past three decades. In this paper, we study the impact of the Iranian defence expenditures on the economic growth for the period 1971-2003. We use the Keynesian macro model to show explicitly the relationship between the defence expenditures and the economic growth. Our results indicate that the defence expenditures in Iran have had negative effects on the saving and the balance of trade, and therefore, on the economic growth.
Keywords
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