375. Testing che relation in another way, a scatistical regression of world armsspending in relation to worrd cDp over the ro years rg7 4-Lg83 indicates thatmlLitary spending increased by o.8B per cent for each 1.0 per cent increase inGDP. (This relationship between percentage changes is the ,,elasticity,' of militaryspending wlth respect to GDp.) Although this estimate of O.gg sugg"sls a sLiqhtdecline in military spending as a proportlon of cDp, it is not significantlydifferen! (at the 95 per cent confidence level)r from an elasticiiy of 1..0, whichttould imply equal growth rates for mllitary spending and GDp. The reason for thedifference between the implications of the regression relationship and of the1974-1983 qrowth rates is that the grovrth rates are car.curated from onry the 1974and 1983 data, whereas the regression is based on the data for each of thel0 years. on balance, these teo ways of rooking at the alata generally confirm theinitlal hypothesis that tbe worldrs military sptnding has been growing at about thesame rate as world cDp. This suggests that a long-term deceleration of worldnilitary spending relative to cDp groflth is not likely, in the absence ofsignificant political developments tending to Iimit the arms race. 376. The concern tbat military spenaling may be a higher relative burden, aspercentage of GDP, in the poorer countries than in the richer ones has beenexamined with two different tecbniques. First, 77 countries h,ere cross-crass i fi edaccording to their level of per capita cDp in 1982 and their military expendilureas a percentage of GDp also in t982, as shorrn in tsable 67.
**Analysis**
The text discusses the relationship between military spending and GDP, examining the elasticity of military spending with respect to GDP. It also explores the potential difference in military spending as a percentage of GDP between poorer and richer countries. The text presents statistical data and regression analysis to support its findings.

**Category**
Economic development, International trade