How buying weapons can harm a country’s economy

By Tomasz Piotr Wisniewski, Professor of Finance, The Open University
Ayman Omar, Assistant Professor of Finance, University of Leicester
Cristiana Bernardi, Senior Lecturer in Accounting and Financial Management, The Open University

Some wars are predictable. There are conflicts past and present which have been more or less expected because of economic and social conditions, a country’s history or that of its neighbours.

In today’s geopolitical landscape, one warning sign that really stands out is the buying and selling of weapons. There is good evidence that a surge in arms imports tends to increase the risk and intensity of future wars.

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