Military expenditure and employment in South Africa

Previous research into the impact of military expenditure on employment fin ds considerable variation across countries. This paper adds to the debate b y examining the long run relationship between military burden and manufactu ring employment in South Africa. Such an analysis provides an opportunity t o test for crowding-out effects and the impact of the marked decline in mil itary spending on the South African economy. The paper finds evidence suppo rting the view that military expenditure will, have a detrimental impact on long term manufacturing employment, adversely affecting industrial structu re and efficiency.