Military Expenditure and Macroeconomic Perfromance – The Case of an Emerging Country

Ologbenla, Patrick

doi:10.2478/subboec-2020-0005

Cited by 5 publications

(3 citation statements)

References 25 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Investments in defence-related research and development can lead to technological advances that have spillover effects on civilian industries (Hartley, K., & Belin, J.;. Defence-related industries often drive innovation (Ologbenla, P.;, contributing to advancements in areas such as aerospace, telecommunications, and information technology, which can subsequently benefit the broader economy (Ortiz, C., et. al.…”

Section: Figure 1 Main Impacts Of Defence Expenditure On Economic Dev...mentioning

confidence: 99%

Security in the Context of Sustainability: The Implications on Defence Expenditures

Bătuşaru,

Sbârcea

2023

Studies in Business and Economics

View full text Add to dashboard Cite

This scientific article aims to assess the link between defence expenditures and sustainable development in Romania. As the world faces increasingly complex security challenges and environmental concerns, it becomes crucial to examine the interplay between defence investments and sustainable development goals. The study focuses specifically on Romania, a country that has been undergoing significant economic and political transformations since joining the European Union. The analysis employs a comprehensive framework that integrates economic, social, and environmental indicators to evaluate the sustainability implications of defence expenditures. Using data from various sources, including national statistics and international databases, this study examines the trends in defence spending in Romania over a specified period. The research investigates the potential trade-offs between defence investments and sustainable development outcomes by considering key dimensions such as economic growth, social well-being, and environmental impact. By examining the case of Romania, valuable insights can be gained regarding the challenges and opportunities in balancing defence expenditures with sustainable development priorities. The study not only provides a comprehensive analysis of the current situation but also identifies potential pathways for enhancing the sustainability of Romania’s defence sector. This study contributes to the broader discourse on sustainable security fostering a more resilient and sustainable future.

show abstract

Section: Figure 1 Main Impacts Of Defence Expenditure On Economic Dev...mentioning

confidence: 99%

Security in the Context of Sustainability: The Implications on Defence Expenditures

Bătuşaru,

Sbârcea

2023

Studies in Business and Economics

View full text Add to dashboard Cite

show abstract

“…However, this area of research is rare and has different purposes in the bloc of developing nations [54]. The academic literature usually analyses the relationship between defence expenditure and economic growth [39,40,55]. Scholars emphasise the fact that the effects of military spending on the development of economies vary according to the country in question [54,56,57].…”

Section: Introductionmentioning

confidence: 99%

“…The five groups of theoretical models of defence and economic development which are present in academic literature are as follows: supply models (the Feder type); demand models; supply and demand models; Barro models; and Solow models. Demand models are criticised for underestimating the supply aspects and can be linked to negative effects on economic development [55]. Dunne et al [50] and Dunne and Tian [47,58] suggest that there are substantial theoretical and econometric reasons for not using the supply model.…”

Section: Introductionmentioning

confidence: 99%

An Assessment of the Relationship between Defence Expenditure and Sustainable Development in the Baltic Countries

Dudzevičiūtė

Bekešienė

Meidutė‐Kavaliauskienė

et al. 2021

Sustainability

View full text Add to dashboard Cite

As geopolitical instability increases and new threats emerge, a number of countries are increasing their respective allocations for defence expenditure in order to take greater responsibility for their citizens in terms of defending and protecting their values and way of life. Small states such as Lithuania, Latvia, and Estonia must evaluate certain economic, political, and strategic factors when increasing their respective defence expenditure. While they do tend to increase expenditure on national defence matters, budgetary constraints often force them to cut funding in some civilian domains or to increase their borrowing on international markets. Therefore, the security and defence of small states must be addressed in an integrated way, taking into account economic, social, and environmental factors. The aim of this article is to assess the relationships between defence expenditure and sustainable development indicators during the period between 2000 and 2018 in the Baltic states. The authors of this article aimed to determine which sustainable development indicators have a significant impact upon a country’s expenditure when it comes to defence matters. The study was conducted using econometric methods, including Spearman’s correlation analysis and Automatic Linear Modelling (ALM). The research results revealed some differences amongst the Baltic countries. In Lithuania, the employment rate and R&D personnel as a share of the active population demonstrated a significant impact upon defence expenditure. In Latvia, defence expenditure was found to be affected by disposable household income per capita and environmental taxes as a share of total tax revenue. In Estonia, defence expenditure was mainly influenced by disposable household income per capita and energy import dependency. The study’s findings may be used to ensure both the security of the country and the implementation of the Sustainable Development Goals.

show abstract

Defence spending and real growth in an asymmetric environment: Accessing evidence from a developing economy

Gbadebo,

Bekun,

Akande

et al. 2024

Int. J Fin Econ

View full text Add to dashboard Cite

The connection between the defence spending and real growth remains a forefront subject of theoretical and empirical research. Nigeria, like many other developing nations, continues to devote numerous fiscal resources to military spending in ensuring peaceful coexistence and to attain sustainable economic growth after her independence in 1960. Because the interdependence between them has policy implications, this paper studies whether there exists asymmetric causality between them. The dataset, from World Bank database, includes long‐range historical series for military expenditure/GDP ratio and growth rate of GDP, covering 1960–2021. In exploring the empirical relations, the paper shows evidence for the symmetric Granger causality, from Toda–Yamamoto (1995) and asymmetric causality, from Hatemi‐J (2012). The standard (symmetric) identifies unidirectional causality evidence, from defence spending to the GDP per capital growth, with no retained potential feedback from real growth to defence spending. The Hatemi‐J (asymmetric) causality maintains evidence that positive shocks in the defence spending may cause a positive shock in the GDP per capital, supposing that increase perturbations to defence spending would be productive and growth‐enhancing. This causal impact is not evident for positive growth shocks. The findings support the need for policymakers to consider sustained growth targets when redesigning the military budget.

show abstract

Military Expenditure and Macroeconomic Perfromance – The Case of an Emerging Country

Cited by 5 publications

References 25 publications

Security in the Context of Sustainability: The Implications on Defence Expenditures

Security in the Context of Sustainability: The Implications on Defence Expenditures

An Assessment of the Relationship between Defence Expenditure and Sustainable Development in the Baltic Countries

Defence spending and real growth in an asymmetric environment: Accessing evidence from a developing economy

Contact Info

Product

Resources

About