A cross-regional analysis of military expenditure, state fragility and economic growth in Africa

Saba, Charles Shaaba; Ngepah, Nicholas

doi:10.1007/s11135-019-00905-6

Cited by 46 publications

(18 citation statements)

References 66 publications

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“…feedback relationship that exist between the two variables. These results are consistent with the findings of Lai et al (2005), Kollias, Manolas, et al (2004), Tiwari and Shahbaz (2013) and Saba and Ngepah (2019).…”

Section: Panel Causality Tests Resultssupporting

confidence: 93%

Military expenditure and economic growth: evidence from a heterogeneous panel of African countries

Saba

Ngepah

2019

Economic Research-Ekonomska Istraživanja

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This study investigates the causal relationship between military expenditure and economic growth by using a balanced panel of 35 African countries spanning 1990 to 2015. It uses the more recently developed bivariate heterogeneous panel causality, GMM and SGMM estimation techniques. The country-by-country causality results reveal:(i) no causal relationship between military expenditure and growth in seven countries; (ii) unidirectional causality from military expenditure to growth in two countries; (iii) unidirectional relationship from growth to military expenditure in fourteen countries; and (iv) bidirectional relationship in twelve countries. These findings imply: (i) that the seven African countries with no causality can pursue defence policy objectives independently from growth policy objectives; (ii) in the fourteen countries, the fact that growth causes military expenditure and not vice versa implies that, defence decisions are not made in a way as to relatively promote growth; (iii) two African countries effectively use military expenditure for growth aims, hence military expenditure causes growth; and (iv) the bidirectional causality in the 12 countries implies that both growth and defence policy objectives can be pursued together. The GMMs results show that military expenditure has a significant negative impact on growth in Africa.

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Section: Panel Causality Tests Resultssupporting

confidence: 93%

Military expenditure and economic growth: evidence from a heterogeneous panel of African countries

Saba

Ngepah

2019

Economic Research-Ekonomska Istraživanja

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“…Pakistan is ranked at the 9 th position in the fragile states index in 2006 [122]. Scarcity of resources do not allow fragile states (like Pakistan) to adopt or upgrade the costly but essential technologies to enhance their productivity level [123]. Technology transfer requires long-term projects in the shape of FDI inflows.…”

Section: Empirical Results and Discussionmentioning

confidence: 99%

Impacts of Voice and Accountability upon Innovation in Pakistan: Evidence from ARDL and Maki Cointegration Approaches

Nadeem

Jiao

Nawaz

et al. 2020

Mathematical Problems in Engineering

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Innovative capacity has a decisive and crucial role in determining who is prospering in the global arena. Innovation is crucial for value creation, high productivity, economic growth, employment, and sustainable development that benefit the consumers, firms, businesses, and economy as a whole. Several institutional, political, and social conditions lead to different responses of innovation. For instance, low voice and accountability may lead to low institutional setting, cronyism, and favoritism in allocation of resources, which can harm innovation. Similarly, the terrorist attack of 9/11 caused horrific scales of destructions, which caught the countries on various fronts such as economic, political, and technological. Further, sound infrastructure and savings rates are essential to enhance innovation. Applying the ARDL approach to cointegration, this study investigates the impact of voice and accountability, terrorism, infrastructure, and savings on innovation in Pakistan. The empirical evidence shows that low voice and accountability and terrorism have adverse impacts on innovation in the short- and long-run periods. Further, findings reveal that inadequate infrastructures and low savings adversely affect the innovation in both periods. Various robust checks such as Maki cointegration, Johansen cointegration test, fully modified ordinary least square, dynamic ordinary least square, and canonical cointegration regression corroborate the results. The findings of the study would be of substantial implications for government and policymakers.

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“…Due to war on terror, a major chunk of its resources shifted toward military expenditure (Nasir & Shahbaz, 2015) and activities like counter-terrorism battles, military and intelligence-based operations, and rehabilitation of internally displaced persons (IDPs; Pakistan Economic Survey, 2016). Pakistan ranked the ninth in fragile states index in 2006 and such economies faced severe financial constraints (Fragile State Index, 2006;Saba & Ngepah, 2019). A country like Pakistan with a weak economic foundation and heavy antiterrorism burdens has to turn to foreign aid to finance its economic activities.…”

Section: Pakistani Contextmentioning

confidence: 99%

Innovation and Sustainable Development: Does Aid and Political Instability Impede Innovation?

et al. 2020

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Sound innovation capabilities help the nations not only to capture bigger market shares but also to sustain long-term economic growth. Innovation is of vital importance at all stages of a country’s development as it promotes productivity, value creation, employment, economic growth, and sustainability. Several factors can affect the innovation activities of a country. For example, peaceful and stable environment, effective macroeconomic designs, sound institutional quality, and efficient utilization of resources are of great significance for a country to nourish economic, business, and market activities. Applying the Auto Regressive Distributive Lag approach to cointegration, this study investigates the short- and long-run impacts of aid, political instability, and terrorism upon the innovation of a laggard economy, namely, Pakistan. Our findings reveal that aid, political instability, and terrorism all have adverse impacts on innovation. Results across robustness checks remain the same. This study is of strong policy implications for policymakers, governments and opposition parties, and security and intelligence agencies to develop sound macroeconomic designs and policies, bring harmony for political stability, and curb terrorism, respectively.

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A cross-regional analysis of military expenditure, state fragility and economic growth in Africa

Cited by 46 publications

References 66 publications

Military expenditure and economic growth: evidence from a heterogeneous panel of African countries

Military expenditure and economic growth: evidence from a heterogeneous panel of African countries

Impacts of Voice and Accountability upon Innovation in Pakistan: Evidence from ARDL and Maki Cointegration Approaches

Innovation and Sustainable Development: Does Aid and Political Instability Impede Innovation?

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