Foreign Capital Flow and Defence Expenditures: Patterns of Causation and Constraint in Pakistan

Abstract

This analysis shows the extent to which defence expenditures have affected the borrowing decisions of the government of Pakistan. Has the government resorted to increased borrowing in these markets to expand allocations to the military? Or, in contrast, have increased defence expenditures tended to restrict access to external credit? Weapons purchased with scarce foreign exchange lead to the availability of fewer resources for the import of investment goods essential for self-sustaining growth. On the one hand, external financing of defence expenditures would reduce the short-run sacrifices often associated with military expenditures. On the other hand, it appears that international lenders such as the International Monetary Fund (IMF) may be increasingly inclined to restrict lending to countries with high levels of defence expenditures.

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Document Details

Document Type
Technical Report
Publication Date
Jan 01, 1998
Accession Number
ADA540743

Entities

People

  • Robert E. Looney

Organizations

  • Naval Postgraduate School

Tags

Communities of Interest

  • Engineered Resilient Systems
  • Human Systems
  • Weapons Technologies

DTIC Thesaurus Topics

  • Abstracts
  • Arms Control
  • Availability
  • Business Administration
  • Contrast
  • Economic Security
  • Economic Systems
  • Finance
  • Governments
  • International Security
  • Investments
  • Military Personnel
  • Money
  • National Security
  • Pakistan
  • Security
  • United States

Fields of Study

  • Political science

Readers

  • Canadian European Scientific Immigration and Epilepsy Clearance Studies
  • Economics