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Literature Review Of Military Expenditure

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INTRODUCTION:
This eesay is about defence budget and missconceptions regarding its way of use. The volume of military expenditure depends on the geographical, political and strategic position of the country on the map. Geopolitical hostilities and domestic violence tend to affect defense expenditure. Other factors like security, technology, political affinity and priorities, geography and history determine defense. Countries surrounded with threats cannot ignore military expenditure no matter what the stage of their development is. Collier and Hoeffler (2002a, 2002b) find that both external and internal threats influence the volume of military expenditure. Other factors pointed out by them are the enhanced political power of the military in non-democratic regimes, and the availability of financial resources to the government Literature Review:
The literature is enriched with studies focusing on budget allocation for defence sector and defense expenditure from different perspectives. Two thoughts are dominant in the literature. Some believe that the military expenditure has very strong positive relationship with the growth of the economy. Others argue that military expenditure is negatively related to the growth of the economy. The military expenditure is also associated with the industrial production of the economy.

What is Defence Budget?
A military budget (or military expenditure), also known as defence budget, is the amount of financial resources dedicated by

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