Defense spending impacts economic growth differently across countries, study finds.
Defense spending and economic growth are connected in countries, but this link can change over time and by country. A study used a rolling-window test to look at this relationship. The results showed that in China, there is a two-way connection between defense spending and economic growth. In South Korea and the UK, the connection is one-way. In all countries except the USA, there is a two-way link between the two factors. However, in the USA, economic growth only influences defense spending, not the other way around.