Military Expenditures and Human Development: Guns and Butter Arguments Revisited: A Case Study from Egypt

This study theoretically and empirically tests the relationship between military spending and social spending in Egypt using data from 1987–2005. The theoretical results show that the crowding-out of social spending is ambiguous, unless the government is fully allocating its tax receipts to the military. The crowding-out of social spending by military spending lacks theoretical and empirical justification.