Defense spending and economic growth: evidence from China, 1952–2012

Augier, Mie; McNab, Robert; Guo, Jerry; Karber, Phillip

doi:10.1080/10242694.2015.1099204

Cited by 58 publications

(15 citation statements)

References 53 publications

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“…in Pakistan, which definitely have a positive effect on Pakistan's growth. The evaluated effects of the analysis are in accordance with (Sezgin, 2000;Alptekin and Levine, 2012;Augier et al, 2015;Mirza et al, 2015;Dash et al, 2016).…”

Section: Resultssupporting

confidence: 76%

“…They found and concluded that economic growth in the US is negatively linked to national defence expenditure. Augier et al (2015) examined defence spending effect on China's economic growth for the period 1952-2012. The study used data recently published on government expenditure, economic activity and defence spending using Feder-Ram and augmented Solow model for estimation.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Likewise, these citizens also bear the entire expenses of the troops which are called military expenditures. Most studies have shown that military spending is positively linked to the economic growth of less developed countries (Augier et al, 2015). Benoit (1973) used cross-sectional data for 44 less-developed countries and found a positive and significant association between military spending and economic growth.…”

Section: Introductionmentioning

confidence: 99%

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The impact of military spendings on economic growth of Pakistan

Sajjad¹,

Tariq²,

Tariq³

2017

JAEBS

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A sound national defence is extremely essential for a country’s sovereignty. The geostrategic position of Pakistan and its deterrence policy against neighbouring India have generally been the reasons for stringent military financing. Defence spending affects all sectors of the economy directly or indirectly. This study aims to investigate the influence of government military expenditures on the economic growth of Pakistan over the period 1987-2016. Augmented Dickey-Fuller test has been used for checking the unit root in the data. Autoregressive Distributed Lag (ARDL) bounds testing approach to cointegration has been applied to analyze the relationship between military spending and economic growth. The findings indicate that military expenditure has a positive impact on Pakistan's economic growth in the long-run, however it has negative effect on economic growth in the short-run.

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Section: Resultssupporting

confidence: 76%

Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

The impact of military spendings on economic growth of Pakistan

Sajjad¹,

Tariq²,

Tariq³

2017

JAEBS

View full text Add to dashboard Cite

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“…Especially with the effect of positive externalities such as infrastructure of defence spending and technological progress, it will affect the economic growth positively. Some studies (Benoit (1978), Deger ve Smith (1983), Gyimah-Brempong (1989), Sezgin (1997), Yildirim, Sezgin, and Öcal (2005), Feridun, Sawhney, and Shahbaz (2011), Shahbaz, Afza, and Shabbir (2013 and Augier et al (2017) which deal with the relationship between defence expenditures and economic growth as the subject of his empirical studies, yielded results indicating that defence expenditures have a positive effect on economic growth. These findings of the researchers support the Military Keynesian approach.…”

Section: Theoretical Framework and Literature Reviewmentioning

confidence: 99%

Relationships Between Defence Expenditures and Economic Growth in G7 Countries: Panel Bootstrap Causality Analysis

Canbay

Kırca

Oflaz

2021

Bingöl Üniversitesi İktisadi Ve İdari Bilimler Fakültesi Dergisi

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It is important to reveal the relationship between defence expenditures and economic growth for both developed countries and developing countries. Dynamic political and economic developments affect defence expenditures. Many macroeconomic variables of countries are affected by the change in defence expenditures. Economic growth comes first among these macroeconomic variables. This study aims to determine the relationships between the economic growth and defense expenditures of the G7 countries for the period 1988-2018. For this purpose, the relationships between variables were examined using bootstrap panel causality analysis developed by Kónya

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“…Alptekin and Levine (2012) rejected the hypotheses that military expenditure reduces economic growth and that military expenditure is detrimental to growth in LDCs but accepted that military expenditure has a positive effect on growth and is non-linear, although just for developed economies. Augier et al (2017) used the Feder-Ram and augmented Solow models to investigate the relationship between defense and growth in China and found that the Feder-Ram model poorly explained economic growth in China. But the augmented Solow model showed that a 1% increase in defense expenditure raises the economic growth rate by approximately 0.15-0.19%.…”

Section: Literature Reviewmentioning

confidence: 99%

The Impact of Military Spending on Economic Wellbeing in Nigeria

Akume

Jelilov

Akanegbu

2019

International Journal of Business, Economics and Management

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The impact of military spending on domestic output is contentious and therefore requires further analysis on a country by country basis to determine its level of significance. Nigeria's military contributions to the Economic Community of West African States (ECOWAS) sub-region and the recent rise of various insurgencies, particularly, Jamāʿat Ahl al-Sunna lil-Daʿawah wa al-Jihād' (Boko Haram)-arguably the most fatal insurgent group-has increased Nigeria's military expenditure. This study investigates the impact of this increase in military spending on the economic well-being (measured by GDP per capita) of Nigerians using the Autoregressive Distributed Lag (ARDL) bounds testing approach to co-integration for the period from 1988 to 2017. The results suggest that there is a positive relationship between military spending and economic well-being in Nigeria. However, the impact on citizens' wellbeing is not instantaneous as the variable is only significant after the current year spending; which does not last longer than a year. The study therefore recommends that defense spending be strategic, and that all earmarked funds for defense be deployed appropriately so that increases in wellbeing can be more long-term as opposed to lasting for only one year. Contribution/Originality: This study contributes to existing literature on military spending and growth. This study uses an adapted model.

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Defense spending and economic growth: evidence from China, 1952–2012

Cited by 58 publications

References 53 publications

The impact of military spendings on economic growth of Pakistan

The impact of military spendings on economic growth of Pakistan

Relationships Between Defence Expenditures and Economic Growth in G7 Countries: Panel Bootstrap Causality Analysis

The Impact of Military Spending on Economic Wellbeing in Nigeria

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