Military Spending and Economic Growth in the Middle East Countries: Bootstrap Panel Causality Test

Pan, Chia-I; Chang, Tsangyao; Wolde‐Rufael, Yemane

doi:10.1080/10242694.2014.891356

Cited by 66 publications

(29 citation statements)

References 50 publications

(75 reference statements)

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“…All of these play an essential role in reducing military spending, concluding that democracy, government policy in a state, and liberalisation have an important role in redistributing budgets and allocating state resources. Pan et al (2014) reviewed the causal relationship between military spending and economic growth in Middle Eastern countries. Their results reflect different causality effects: a unidirectional causality in Turkey's military spending, a unilateral causal effect between economic growth and military spending for Egypt, Kuwait, Lebanon and Syria, two-way causal influence in Israel, and no causality effect for Jordan, Oman and Saudi Arabia.…”

Section: The Relationship Between Military Expenditures and Economic mentioning

confidence: 99%

Correlation of military expenditures and economic growth: lessons for Romania

et al. 2019

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This paper examines the correlation between public policies in the field of military expenditures and economic growth in Romania. The research is built upon the vast literature focused on the field of public policies and economic growth. Whereas economic growth became one of the most dynamic areas in economics, this correlation will consider the determinants of the real sector development through economic phenomenon modeling. The impact of military expenditures on growth is analysed for Romania, using annual data over the period 1991-2016. The research methodology employed is the Granger causality test. The empirical results reveal that there is a bidirectional relationship between military expenditure and GDP over the long run, with a positive effect described by both relationships through several models exemplified in the analysis. From the economic point of view, these results highlight the impact of military expenditures, generating different positive effects on labor, capital, economic growth and efficient use of resources in the economic sector, at the national level.

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Section: The Relationship Between Military Expenditures and Economic mentioning

confidence: 99%

Correlation of military expenditures and economic growth: lessons for Romania

et al. 2019

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“…In order to test the null hypothesis of slope coefficient homogeneity against the alternative hypothesis, the familiar approach is to apply the Wald principle. Details on the cross-sectional dependence and slope homogeneous tests, interested readers can refer to Chang et al, (2014), Chang and Tsai (2015), Pan et al, (2015), and Zhong et al, (2015).…”

Section: Cross-sectional Dependence and Slope Homogeneous Testsmentioning

confidence: 99%

The nexus between military expenditures and economic growth in the BRICS and the US: an empirical note

Zhong

Chang

Goswami

et al. 2016

Defence and Peace Economics

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“…In the third regression, where GDPPC is taken as an endogenous variable shows that ECons and ME both have a positive and significant impact on GDPPC, while Unemp and PGR significantly decreases GDPPC in SAARC region. There are very few studies that explored the population led military expenditures, however, there are a number of studies that explored growth led military spending in their economies i.e., Pan et al (2014) for Middle East countries, Thorpe (2014) for American Warfare States, Khalid and Mustapha (2014) for India, El-Said and Harrigan (2014) for Jordan, Egypt, Morocco, and Tunisia, etc. The remaining statistics i.e., R-square is 76.71 % for model [1] and 60.90 % for model [2].…”

Section: Resultsmentioning

confidence: 98%

Military Expenditures and Unemployment Nexus for Selected South Asian Countries

et al. 2015

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The objective of the study is to examine the relationship between military expenditures and unemployment rate in the panel of selected SAARC countries namely India, Nepal, Pakistan and Sri Lanka over the period ranging from 1990 to 2013. In particular, the study used multivariate framework to examine the long-run relationship between military expenditures and unemployment rate by taking into account the effect of macroeconomic variables namely energy consumption, GDP per capita, Foreign Direct Investment (FDI) net inflows and population growth rate. The empirical results show that all the variables exhibit non-stationary behavior and have long-run relationships between them. The results of panel DOLS show that military expenditures favor the employment rate in the SAARC region, as the estimated coefficient of military expenditure has a negative and more elastic relationship with the unemployment rate. Other factors i.e., energy consumption, GDP per capita and incoming FDI significantly decreases the unemployment rate in the SAARC region. However, population growth rate does not exhibit significant association with the unemployment rate during the period under the study. In a second regression apparatus, energy consumption, and GDP per capita significantly decrease the military spending, however, population growth rate significantly increases the military expenditures in the region. The results of causality indicate that there is an inverse causality between energy consumption, GDP per capita and population growth rate with the unemployment rate, while there is no significant causation between military spending and the rest of the variables in the short-run. In the long-run, there is a significant causation between the variables with the exception of population growth rate in SAARC region. These results are valuable both for policy makers and government officials to formulate their strategic polices for SAARC countries.

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Military Spending and Economic Growth in the Middle East Countries: Bootstrap Panel Causality Test

Cited by 66 publications

References 50 publications

Correlation of military expenditures and economic growth: lessons for Romania

Correlation of military expenditures and economic growth: lessons for Romania

The nexus between military expenditures and economic growth in the BRICS and the US: an empirical note

Military Expenditures and Unemployment Nexus for Selected South Asian Countries

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