IJSRP, Volume 8, Issue 7, July 2018 Edition [ISSN 2250-3153]
The defense expenditures of the Pakistan economy remain high to sustain a credible deterrence, due to the significant geopolitical position, regional instability as well as a constant conflicting with India since the independence. This study will analyze the effect of defense expenditures on economic growth with some other political factors, such as corruption, defense spending and political-instability. The empirical results of the study observed that there exist positive defense expenditures positive relationship between defense expenditure and economic development which caused expansion of aggregate demand, production and employment generation in the economy which is also suggested by the Benoit (1973, 1978), and Faini et al. (1984).