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