The Heritage Foundation

Center for Data Analysis Report on Economy

April 12, 2005

April 12, 2005 | Center for Data Analysis Report on Economy

U.S. Troops and Economic Growth: Regression Analysis with Robustness Tests

Abstract: The deployment of U.S. military troops to foreign countries has a positive relationship with economic growth in the host countries. We use data on the deployment of U.S. troops to foreign countries over the years 1950-2000 and Summers-Heston data on real gross domestic product per capita (GDP) of 94 countries during the years 1960-2000. Robustness tests confirm the strong troops-growth relationship. The security umbrella provided by American forces and the role troops may play in diffusing institutions are among explanations suggested for the relationship.

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About the Author

Tim Kane, Ph.D. Visiting Fellow
Center for Trade and Economics (CTE)

Related Issues: Economy