Military presence and economic growth. The case of the COVID-19 pandemic in Spain

Francisco José Callado-Muñoz; Natalia Utrero-González; Francisco José Callado-Muñoz; Natalia Utrero-González

doi:10.3934/NAR.2026009

National Accounting Review

2026, Volume 8, Issue 2: 186-205. doi: 10.3934/NAR.2026009

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Research article

Military presence and economic growth. The case of the COVID-19 pandemic in Spain

Francisco José Callado-Muñoz ^{1
,
,},
Natalia Utrero-González ²

1.
Department of Financial Economics and Accounting, Faculty of Economics and Business Sciences, University of Alicante, 03690 Alicante, Spain
2.
Department of Economics and Social Sciences, Universitat Politècnica de València, Plaça Ferrándiz i Carbonell, s/n, 03801 Alcoi, Spain

Received: 16 October 2025 Revised: 26 February 2026 Accepted: 27 March 2026 Published: 22 April 2026
JEL Codes: O10, O4, H56, H84

The evolving security paradigm has led to an increased domestic deployment of armed forces in Western nations to aid civilian authorities in managing crises. While this trend is prominent, its socioeconomic consequences, particularly on local economies, are not well understood. This study exploited a natural experiment—the COVID-19 pandemic—and granular provincial data to investigate the relationship between military presence and local economic activity. The analysis revealed a statistically significant positive effect, which intensified markedly during the pandemic. These findings highlight the significant role that military institutions can play as economic actors during periods of civil unrest.
- growth,
- GDP,
- economic development,
- Military,
- Covid-19
Citation: Francisco José Callado-Muñoz, Natalia Utrero-González. Military presence and economic growth. The case of the COVID-19 pandemic in Spain[J]. National Accounting Review, 2026, 8(2): 186-205. doi: 10.3934/NAR.2026009

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Abstract

The evolving security paradigm has led to an increased domestic deployment of armed forces in Western nations to aid civilian authorities in managing crises. While this trend is prominent, its socioeconomic consequences, particularly on local economies, are not well understood. This study exploited a natural experiment—the COVID-19 pandemic—and granular provincial data to investigate the relationship between military presence and local economic activity. The analysis revealed a statistically significant positive effect, which intensified markedly during the pandemic. These findings highlight the significant role that military institutions can play as economic actors during periods of civil unrest.

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