Mohammad Mowlaei - Assistant Professor, Department of Economics, Bu-Ali Sina University, Hamedan, Iran
Abolghasm Golkhandan - Ph.D Candidate in Economics, Lorestan University, Khoram-Abad, Iran

Middle East is a strategic region because of its abundant oil reserves, hostile struggles among the countries, and threat of the radical groups. The countries of this region spend a large amount of their annual budgets on buying weapons and war armaments. The purpose of this paper is to study the impact of military expenditures on economic growth of oil and non-oil Middle East countries by a dynamic panel model during ۱۹۸۸-۲۰۱۲. The paper results show the negative impact of the military expenditures on economic growth of the Middle East countries which is more visible in oil countries than the non-oil ones.

Augmented Solow Model, Dynamic Panel Data Model, economic growth, Military Expenditure, Oil and Non-oil Countries