Effect of military expenditure on economic growth: evidences from India Pakistan and China using cointegration and causality analysis

Raju, Mohammad Hasan; Ahmed, Zobayer

doi:10.1186/s40856-019-0040-6

Cited by 30 publications

(17 citation statements)

References 27 publications

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“…In other words, it was found that increasing military expenditures increased the economic growth. Our findings are parallel with the results of the studies conducted by Benoit (1978), Dunne et al (2001), Destek and Okumuş (2016), Raju and Ahmed (2019), and Laniran and Ajala (2021) in the literature. Technological changes in defense sector increase the total factor productivity and thus contribute to the development of manufacturing industries.…”

Section: Analysis and Findingssupporting

confidence: 91%

The Effect of Military Expenditures on Economic Growth and Unemployment: Evidence From Turkey

Ceyhan

Köstekçi

2021

Fırat Üniversitesi Sosyal Bilimler Dergisi

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Nowadays, military expenditures have an important share in public expenditures of countries. Although military expenditures have an important share in public expenditures, it is considered that military expenditures are unproductive in the economic growth and development process. The point in question, increases in military expenditures may cause less spending on economic and social fields. Less resource allocation to economic and social fields affects growth and employment. Thus, in this study, it is aimed to investigate the effect of military spending on economic growth and unemployment in Turkey. A data set which based on the period 1988-2019 was used to examine the relations between variables. According to the findings of Maki (2012) cointegration test, a cointegration relationship was found between military expenditure (ME), economic growth (EG) and unemployment (UNEMP). The FMOLS estimator was used for the estimation of long-term coefficients in the study. According to the results, it has been determined that military expenditures increase economic growth and unemployment in the long-term. This results showed that military expenditure led to growth that not based on employment in Turkey.

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Section: Analysis and Findingssupporting

confidence: 91%

The Effect of Military Expenditures on Economic Growth and Unemployment: Evidence From Turkey

Ceyhan

Köstekçi

2021

Fırat Üniversitesi Sosyal Bilimler Dergisi

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“…One of the latest studies based on the above relationship was conducted by Raju et al (2019) using cointegration and causality test on the panel data of three South Asian countries. The findings of the study suggested that there is a positive long-run relationship between military expenditure and economic growth.…”

Section: Literature Reviewmentioning

confidence: 99%

The Asymmetric Relationship Between Military Expenditure, Economic Growth and Industrial Productivity: An Empirical Analysis of India, China and Pakistan Via the NARDL Approach

Syed

2021

Finanz. polit. econ

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This research work aims to verify how military expenditure promotes economic growth and industrial productivity, as suggested by the Military Keynesianism postulate. The NARDL method is employed to achieve the above objective on the panel data of India, China, and Pakistan, covering the period between 1990 and 2018. The study finds that the positive and negative impact of military expenditure has a significant positive and negative effect on economic growth in the long run for China and India; however, in the short-run, only positive impact favors economic growth. Thus, there is a symmetric effect in the short-run and an asymmetric impact in the long-run. This asymmetric result supports the work of Military Keynesianism, helping policymakers in devising appropriate macro-economic policies.

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“…The short-run result showed that military spending and the number of persons in the military had a positive and significant link with economic growth. Raju and Ahmed (2019) used the Engle-Granger cointegration technique in a similar study to investigate the short-run and long-run nexus between military spending and economic growth in India, Pakistan and China using 1980-2017, 1989-2017and 1989-2017 respectively as ranges of data. The long-run results showed that military spending had a positive relationship with economic growth in the three countries.…”

Section: Empirical Literaturementioning

confidence: 99%

Military Outlay and Economic Growth: The Scenarios of Lake Chad Basin Countries of the Republic of Chad and Nigeria

Duru

Eze

Okafor

et al. 2021

Growth

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This study examined the relationship between military outlay and economic growth in the Lake Chad Basin countries of Nigeria and the Republic of Chad respectively by testing the causal link between these two principal variables. The data ranges used for Nigeria and Chad were 1981-2019 and 1983-2019 respectively. The econometric method employed for this study was the Autoregressive Distributed Lag Bounds approach to cointegration. The results revealed that Nigeria's military outlay exerted a positive and insignificant relationship with economic growth. However, the Republic of Chad's military outlay had a positive and significant link with economic growth. The results of the causality test showed that there was no causal relationship between real GDP per capita and military outlay in both Nigeria and the Republic of Chad. These findings for Nigeria and Chad imply that they can pursue the policy objectives of defence and economic growth independently. The study, thus, recommends that the policymakers of the governments of both countries should pursue the policy objectives of defence and economic growth independently. Furthermore, the Economic and Financial Crimes Commission (EFCC) and Independent Corrupt Practices and other Related Offences Commission (ICPC), charged with the responsibility of fighting corruption should rise to the occasion and track down military officials that divert defence funds for individual gains in Nigeria.

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Effect of military expenditure on economic growth: evidences from India Pakistan and China using cointegration and causality analysis

Cited by 30 publications

References 27 publications

The Effect of Military Expenditures on Economic Growth and Unemployment: Evidence From Turkey

The Effect of Military Expenditures on Economic Growth and Unemployment: Evidence From Turkey

The Asymmetric Relationship Between Military Expenditure, Economic Growth and Industrial Productivity: An Empirical Analysis of India, China and Pakistan Via the NARDL Approach

Military Outlay and Economic Growth: The Scenarios of Lake Chad Basin Countries of the Republic of Chad and Nigeria

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