This study examines the relationship between military spending, economic growth, and gender inequality in Middle East and North Africa (MENA) countries. Military spending may stimulate short-term growth through aggregate demand but undermine long-term growth by diverting resources from productive sectors. It may also exacerbate gender inequality by crowding out social expenditures that disproportionately benefit women. As a result, military spending can affect economic growth both directly and indirectly through its impact on gender inequality. Despite the importance of this channel, the trivariate relationship among military spending, gender inequality, and growth remains underexplored. Focusing on 19 MENA countries over 1990–2018 and using the Gender Inequality Index, this study provides new evidence on the direct and indirect effects of military spending on economic growth. JEL Classification : H56, J16, O47
Adem Elveren (Wed,) studied this question.