THE IMPACT OF MILITARY PARTICIPATION ON ECONOMIC-GROWTH AND INCOME INEQUALITY - SOME NEW EVIDENCE

Andreski has argued that high military participation ratios should inc rease economic growth rates as well as equality in the size distributi on of income. Intervening variables in this explanatory sketch are hum an capital formation and/or the domestic balance of power between ruli ng and lower classes. This paper explores an interaction model where t he effects of the military participation ratio on growth rates vary de pending on the level of economic development. It is argued that milita ry discipline becomes less and less useful, the more highly developed an economy is. Concerning income inequality, this study analyzes a new and carefully compiled data set which, however, does not produce sign ificant findings to support the view that military participation promo tes egalitarianism.