Investigating the impact of military spending on economic growth through the public debt channel

The impact of military spending on economic growth can be different according to various factors such as the type of arms trade policy. Also, the discussions related to military spending and economic growth have provided different results. The purpose of this study is to investigate the impact of military spending on economic growth through the channel of public debt. For this purpose, the indicators of different sectors of the economy and the methods of panel data and the FMOLS technique have been used. The study period is 2000-2022. The results of the study show that, in general, improvement in the indicators of military spending, corruption control and trade have a positive and significant effect on economic growth in the selected MENA countries, and in contrast to the effect of military spending on public debt channel, government size, Urbanization rate and inflation rate have a negative effect on economic growth in selected MENA countries. The variables of public debt and natural resources index and the number of military forces did not show a significant effect on economic growth.