U.S. Military Deployment and Host

Since the end of World War II, the U.S. military has deployed its troops all over the world for regional security and/or peace building. Despite the importance of its political, economic, and military impact on the region, few studies examined how U.S. military deployment overseas affects the host nation’s economy except Jones and Kane (2012) and Kane (2012). To help fill the gap in the literature, we tested how substantial U.S. troop deployment (more than 100 troops on average) affects the host state’s investment, trade, political development, and economic growth for the period from 1960 to 2014, using the seemingly unrelated regression (SUR) model. The results show that the presence of U.S. troops does promote investment, trade, and economic growth in the host state. The United States deploys troops for regional security purposes, but these deployments also help economic growth directly and indirectly