Economic modeling and empirical approach to address the issues of optimizing a correlation of available resources for national defense and economic growth
Importance Military activities of the State and issues of their support are closely related with growth rates of the national economy and socio-economic development. The advanced military production significantly influences social reproduction processes through its multiplicative effect, accelerating the economic growth in certain circumstances. Objectives The research examines how military and economic capabilities of the country influence macroeconomic processes and economic growth, conditions, factors that generate the effect, methodological framework for optimizing military spending in line with changes in the military, political and macroeconomic situation. Methods The research draws upon the methodological framework of contemporary macroeconomic, military and economic analysis, and mathematical modeling in economics. Results As the research proves, production, exchange and consumption of national military products can become one of the critical factors for implementing innovative technologies in this sector of the national economy, with the military-industrial complex of Russia driving an economic growth of the country. Conclusions and Relevance Based on historical analogies and examples, statistical analysis, economic and mathematical modeling, we verified the hypothesis stating that military expenditures stimulated an economic growth in the current economic conditions of Russia. Sustainable and consistent economic growth underlies national and economic security.
Keywords: available resources, military expenditures, economic growth, military-industrial complex, macroeconomics
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