1. U.S. Troops and Foreign Economic Growth.
- Author
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Jones, G. and Kane, T.
- Subjects
- *
ECONOMIC development , *DEPLOYMENT (Military strategy) , *ECONOMETRICS - Abstract
Do American troops help or hinder economic growth in other countries? We consider a newly constructed dataset of the deployment of U.S. troops over the years 1950–2000 and discover a positive relationship between deployed troops and host country economic growth, which is robust to multiple control variables. Each tenfold increase in U.S. troops is associated with a one–third percentage point increase in average host country annual growth. We explore three possible causal explanations: a Keynesian aggregate demand boost; the diffusion of institutions; and security. Extensive econometric testing, including the use of panel data, confirms the core relationship. [ABSTRACT FROM PUBLISHER]
- Published
- 2012
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