Bahman Khanalizadeh
PhD student in Financial Economics, Department of Economics, Islamic Azad University, Zanjan Branch, Zanjan, Iran.

(Email: Khanali.bahman@yahoo.com) (whats app: 00989127920179)
Article info:
Paper category: Original Scientific Paper
Received: 25.5.2020.
Accepted: 4.5.2021.
JEL classification: O31, O32
DOI: https://doi.org/10.32728/ric.2021.71/3
Keywords:
Defense Economics; Research and Development; Technological Innovation;

ABSTRACT

The Purpose. This research is to investigate the relationship between the variables of technological innovation, research and development costs, economic growth, sales and export of weapons and military costs in Iran for the years 2000 to 2017.

Design/Methodology/Approach. In this study, we examine using Autoregressive Distributed Lag (ARDL) method to explore the estimating the impacts of technological innovation, research and development costs, economic growth, sales and export on military costs.

Findings/Implications. The results of this study showed that the impact of technological innovation and research and development costs on military costs is negative in short-term and long-term. Although the effect that these two variables have on military spending in the short-term is very close, in long-term the effect that research and development costs have on military spending is far greater and more significant. Also, the impact of economic growth on Iran’s defense economy is much less than the variables of technological innovation and research and development costs. So that this effect will be less in long-term. But, the amount of arms sales and exports in the short-term has a positive effect on defense spending, but in long-term it becomes negative and increase in arms sales and exports can help Iran’s defense economy.

Originality.The countries defense economy can always have positive effects on military and civilian research and development, scientific innovation and technological progress, in this condition

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