Examining the relationship between defence spending and economic performance in the Middle East and South Asia, the author finds evidence that the military expenditures of developing countries do not necessarily reduce their economic growth. Defence spending can act as an economic stimulus by financing heavy industry and speeding the acquisition of advanced technologies, as well as providing employment and attracting investment. Robert Looney analyzes several countries' defence and development spending over the 1980s, incorporating an appraisal of regional rivalries and arms races. He concludes with an assessment of future spending patterns and his estimates of the economically sustainable spending limits for each country.
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