The Impact of Military Expenditures on Human Capital Development in the Arab World

Addresses the question of whether military expenditures in the Arab world have been at the expense of human capital development. Mainly finds that countries in the Arab world have experienced increases in human capital development associated with increased rates of military participation (armed forces per capita). This phenomenon is in sharp contrast with that found in non‐Arab countries. Also this phenomenon appears to be relatively recent, increasing in strength during the period after 1980. In part Arab governments have chosen to subsidize the education of increased numbers of civilians during periods of steppedup military expenditures with the understanding that upon completion of training those individuals will serve some time in the military.