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This study aims to investigate the asymmetric effect of military expenditure on economic growth in Nigeria. Furthermore, it determines the threshold level of military expenditure that spurs or hinders economic growth in Nigeria. To achieve the study's objectives, the nonlinear autoregressive distributed lag (NARDL) and dynamic threshold autoregressive (TAR) techniques are applied as estimation techniques to data from 1981 to 2020. The findings from the study show that (1) positive shocks in military expenditure negatively impact economic growth in the short run, while the effect turns positive in the long run. (2) Negative military expenditure shocks negatively influenced economic growth in Nigeria in both periods. (3) The result from the threshold regression found a threshold value of 0.579 for military expenditure. Based on these findings, policymakers must consider the inherent tendency of asymmetry and nonlinearity in military expenditure when formulating policies related to government spending. [ABSTRACT FROM AUTHOR]

This study investigates the relationship between political stability, military expenditure, and economic growth in Tanzania, from 2002 to 2022. The study uses the ARDL model due to its ability to handle variables with different orders of integration, its flexibility in capturing dynamic relationships, and its robustness in providing insights into both short-term and long-term interactions among variables. The ARDL bounds test has revealed the existence of cointegration, suggesting the presence of long-run relationships among variables. Moreover, the empirical results show that past GDP is positively related to current economic growth, while the effect of voice and accountability on economic growth remains statistically insignificant. Further, the effects of regulatory quality and the rule of law on economic growth exhibit mixed effects. Also, the individual effects of political stability and military expenditure on the economy remain positive and statistically significant. However, the interaction of political stability and military spending is negatively related with the current economic growth but positively correlated with economic growth in the long run. These findings underscore the imperative of political stability and strategic military expenditure as critical ingredients in generating sustainable economic growth in Tanzania. [ABSTRACT FROM AUTHOR]

Unquestionably, all countries prioritize maintaining peace and fostering long-term sustainable economic growth. For this purpose, this study assessed the impact of military expenditure on economic growth using a multivariate regression model based on the enhanced production function in the presence of energy consumption. The study clustered 48 Islamic countries into their income levels over the period from 1990 to 2018, and using the dynamic common corrected effects in determining the elasticities of the explanatory variables. The empirical results revealed a negative effect of military expenditure on economic growth and the elasticity of military expenditure to economic growth was lowest in upper-middle-income countries than in the other three groups. In the main panel a 1% increase in military expenditure led to a 0.101% decrease in economic growth. The results of the paired Dumitrescu Hurlin panel causality test revealed a bidirectional causal affiliation between economic growth and military expenditure. In addition, the empirical findings revealed that the levels of military expenditure, as a component of total government expenditure, are too high in the employed economies and need to be transferred toward more productive non-military expenditure in order to improve the economic growth performance and other growth determinants. [ABSTRACT FROM AUTHOR]

The relationship between government defence expenditure and economic growth is a debated topic. This study uses UK data for the period of 1960–2012 and applies two of the most prevailing theories used within the literature, the 'Feder-Ram' and the 'augmented Solow' models, to assess this question. We utilise traditional model specifications, alongside extensively altered versions of both models, enabling a comprehensive comparison between them. The alterations to the models include re-evaluating how core variables are expressed, inclusion of measures of conflict, the impact of recession, etc. The results show that the augmented Solow model outperforms the Feder-Ram model, and we provide some explanations for this result. In addition, our results suggest that military expenditure has a positive effect on economic growth within the UK, implying that the decision to reduce defence spending may have been detrimental to the UK economy. [ABSTRACT FROM AUTHOR]

Countries with different democratic levels tend to show various degrees of emphasis on military expenditure and a consensus can hardly be reached on the economic effect of democracy and military expenditure. By applying a panel vector autoregressive (PVAR) approach, this article examines the potential dynamic and endogenous relationships among democracy, military expenditure and economic growth of 126 countries from 1990 to 2020. Furthermore, the k-means clustering algorithm is employed to account for the heterogeneous interaction between democracy and military expenditure in different countries. The empirical results reveal that the strong positive impact of democracy and the negative effect of military spending on economic growth exists in the full sample and the cluster of countries with low democratic levels and a high military burden. For democratic countries with low military expenditure, there is a more significant and negative impact both of military expenditure on democracy and vice versa. [ABSTRACT FROM AUTHOR]

Across African countries, terrorism has become a major challenge to socioeconomic development. While there are studies that have examined the influence of terrorism on economic growth, this study adds to the existing literature by investigating the role of military expenditure on the relationship between terrorism and economic growth in Africa. The study utilised a dataset comprising 24 African countries for which terrorism activities have increased substantially in the last decades. Utilising an instrumental variable Fixed Effects model with standard errors that account for cross-sectional dependence, serial correlation and group-wise heteroskedasticity, the study revealed that, (1) terrorism has a detrimental effect on economic growth in the selected African countries, (2) the interactive effect of military expenditure and terrorism on economic growth is significantly positive, (3) the net effect of military expenditure on the relationship between terrorism and economic growth is positive when the number of terrorism incidents act as a proxy for terrorism but negative when the number of terrorism fatalities acts as a proxy for terrorism. However, this negative effect is substantially lower when compared to the unconditional effect of terrorism on economic growth in Africa. Policy recommendations based on these findings are discussed. [ABSTRACT FROM AUTHOR]

One of the fiscal policy strategies used by the government to strengthen the economy and national security is military expenditure. There are many inconsistencies in the results of research examining the influence of military expenditure on economic growth, and it is still rare to find research that validates the influence of military expenditure on the exchange rate. Through time series data in Indonesia during the 1999-2021 period, this research validates the relationship between these three variables using Two-stage Least Square (2SLS) Regression Analysis. The estimation results using econometric models provide empirical evidence of the strength of military expenditure in influencing economic growth and the exchange rate, although the level of influence on economic growth is much higher than the exchange rate. It is recommended that further research carry out a Granger causality test and a Johansen cointegration test to determine the term of the causal relationship between the three variables studied.

Although possible asymmetries for univariate and multivariate dynamics have been the focus of interest in many areas of economic explorations, it seems that most of the research on military expenditure - economic growth nexus has tended to assume linear relationships. This paper aims to examine possible nonlinearities in military expenditure-economic growth nexus employing data for a sample of 103 countries covering the 1988-2019 period. For this purpose, Panel Smooth Transition Regression, PSTR, models are estimated not only for all countries' sample but also for low income, middle income, and high-income countries' subsamples to reveal possible distinct asymmetric relationships for country groups with different income levels. Empirical results for the whole sample, low income and middle income groups indicate that military expenditure not only governs the regime change, but also low and high levels of military expenditure have distinctive and rising negative effects on economic growth with dissimilar threshold effects. Moreover, empirical findings also indicate that net arms exports govern regime change for high income countries, and as net arms exports rise, the negative impacts of military expenditure on economic growth become deeper. [ABSTRACT FROM AUTHOR]

The purpose of this study is to examine the moderating role and threshold level of institutional quality in the nexus between military expenditure and economic growth for a panel of 31 African nations. The results reveal that military expenditure negatively influences growth, while institutional quality positively affects growth. The interactive term of institutional quality and military expenditure significantly positively influence economic growth. However, the threshold level of institutional quality for military expenditure to translate into economic growth in the region is found to be 4.61 on an ordinary scale of 0–10, although most countries operate below the threshold point of institutional quality. The study concludes that strong institutional quality serves as important absorptive capacity for military expenditure to drive economic growth in the region. [ABSTRACT FROM AUTHOR]

Previous studies have investigated the relationship between political instability and economic growth separately from the relationship between military expenditure and economic growth. Besides, they did not cover the period after 2011 (i.e. the Arab Spring and its consequences). Therefore, this paper attempts to empirically analyze the long-run and short-run impacts of both political instability and military expenditure on economic growth in Egypt. We estimate the autoregressive distributed lag (ARDL) approach using data on the Egyptian economy over the period 1982–2018. For the robustness of our results, we use the fully modified ordinary least squares (FMOLS) estimator. Results of the ARDL approach indicate a significant negative relationship between political instability and economic growth in both the long-run and short-run. Contrarily, military expenditure has an insignificant impact on economic growth, especially in the long-run. These results are confirmed by the FMOLS estimator. Moreover, the estimated coefficient on the one-period lagged error correction term (ECTt-1) indicates that deviations from the long-run equilibrium relationship are corrected within a year. [ABSTRACT FROM AUTHOR]

Copyright of BMS: Bulletin de Methodologie Sociologique (Sage Publications Ltd.) is the property of Sage Publications Inc. and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

There is a consensus that the post-war Japanese foreign policy is based on the Yoshida Doctrine or Yoshida Line, which refers to the strategies of former Prime Minister Shigeru Yoshida, who relied upon US military security, and maintained limited defense forces while focusing on economic recovery and growth. This paper reconsidered the Yoshida Doctrine, referencing multiple related arguments and evidence, reaching a conclusion that post-war Japanese foreign policy should not be called the Yoshida Doctrine or Yoshida Line. The Yoshida Doctrine is an analytical concept created by researchers in the 1980s to justify Japanese foreign policy. This was done in response to the domestic and foreign criticism of low-level military spending, despite the flourishing economy. The Yoshida Doctrine differs from other foreign policy doctrines and has no merit for being called a doctrine. Furthermore, the ideas supporting this doctrine are not based on definitive proof; rather, they merely represent Yoshida's image, and a spurious correlation, drawn between limited defense spending and high-economic growth. The analysis carried out in this study reveals that the Yoshida Doctrine is fundamentally flawed. As a result, this study insists that it is necessary to abandon the Yoshida Doctrine as a base for future research on Japanese diplomacy. [ABSTRACT FROM AUTHOR]

Over a period of more than a century and a half (1852–2019), military expenditure in Portugal reached its highest values in the contexts of the Great War (1914–1918) and the Colonial War (1961–1974). In almost every year between these two conflicts, military expenditure was the most important sector within the structure of the Portuguese State. However, with the end of the Colonial War and Portugal's entry into Democracy, there was a clear shift in this pattern. Since 1975, military expenditure has ceased to be the most important sector of the Portuguese State, and currently plays only a very reduced role, while social spending has today supplanted it as the most significant sector. Through the estimation of a dynamic model, it proved possible to identify some of the positive and negative effects of military spending on the Portuguese economy during the period 1874–2018. These results are a possibility that is supported by the theoretical framework. [ABSTRACT FROM AUTHOR]

Bu çalışmada askeri harcamalar, ekonomik büyüme ve çevre kirliliği arasındaki ilişki Türkiye için 1961-2016 dönemi verileri kullanılarak incelenmiştir. Çalışmada değişkenlerin durağanlık dereceleri yumuşak yapısal kırılmalara izin veren Fourier Augmented Dickey-Fuller birim kök testi kullanılarak incelenmiştir. Birim kök sonuçları değişkenlerin seviyelerinde birim köklü iken birinci farklarında farklı anlamlılık düzeylerinde durağan olduğunu göstermektedir. Çalışmada değişkenler arasındaki nedensellik ise Toda-Yamamoto nedensellik testinin yanında literatüre yeni kazandırılmış yapısal kırılmalara izin veren Fourier Toda-Yamamoto nedensellik testi kullanılarak incelenmiştir. Nedensellik testi sonuçlarına göre yalnızca ekonomik büyüme ile askeri harcamalar arasında bir nedensellik tespit edilmiştir. Tespit edilen nedenselliğin yönü ise ekonomik büyümeden askeri harcamalara doğrudur. Diğer değişkenler arasında ise bir nedensellik tespit edilememiştir. Tespit edilen nedensel ilişkinin yapısal kırılmalara izin veren Fourier Toda-Yamamoto nedensellik testi kullanılarak tespit edilmiş olması yapısal kırılmaların nedensel ilişkilerdeki önemini ortaya koymaktadır. Çalışmanın genel sonuçlarına göre sürdürülebilir bir ekonomik büyümenin askeri harcamalara kaynak olması bakımından önemli olduğu görülmektedir. Bu sonuçların politika yapıcılar için yol gösterici olması beklenmektedir.

Purpose – The relationship between military expenditure and economic growth is complex. The purpose of this paper is to examine this relationship in India. Design/methodology/approach – The design of this study is descriptive in the theoretical part, and quantitative in the applied one. The study uses time series approach, and Hendry General-to-Specific (GTS) modeling methodology, to examine and analyze the relationship between military expenditure and economic growth in India, during the period 1980-2016. Findings – The study shows the following: Absence of causal relationship between military expenditure and economic growth in India, during indicated period. The continuous regional tensions facing India represent the main factor for adopting Indian military strategy and emphasizing military capabilities. India has been able to build and develop links between civilian and military sectors. The Indian military scientific and manufacturing policies have achieved self-sufficiency in some of its military needs, a strong military industrial base and high levels of military exports. India participated with developed countries in military strategic industries. Such participation contributed to the integration of civilian and military sectors. India gave rights to private sector and foreign direct investment (FDI) for manufacturing in military industries, giving full marketing rights to the Indian government. These new policies considered a great move toward deep changes for Indian military manufacturing policy. Social implications – The findings shed light on the importance of stimulating links between civilian and military sectors, particularly in the industrial sectors and scientific activities. Originality/value – This study has a contribution to literature of military expenditures' economic effects. Theoretically, this study tries to fill the research gap regarding the impact of military expenditure in Indian case. Furthermore, to the best of the authors' knowledge, this is the first study that examines the relationship between military expenditure and economic growth in India using Hendry general-to-specific (GTS) modeling methodology and time series approach.

The relationship between military expenditure and growth is one of the most contentious topics of inquiry in macroeconomics. Researchers have failed to reach a consensus despite the large volume of published studies in the literature. This study contributes to this debate with a focus on the case of Nigeria. The focus on Nigeria is warranted by the increasing role of the military consequent upon the rising levels of insecurity in the country. Empirical analyses are aided by a novel dataset on various measures of milex and growth collected from Stockholm International Peace Research Institute (SIPRI) and the World Development Indicators (WDI). The dataset is mainly employed within the framework of the Toda-Yamamoto-Dolado-Lütkepohl (TYDL) Granger non-causality test which is robust to the integration and cointegration properties of the data. Preliminary tests for integration of the variables are, however, carried out to determine the maximum order of integration as required by the TYDL test. Additionally, stationarity tests are necessary for determining whether a model is composed of nonstationary variables, in which case a cointegration test will be necessary for determining whether a linear combination of such variables is stationary. The analyses of impulse response functions and variance decomposition provide complementary evidence to the TYDL test. The study leads to some interesting results. Johansen cointegration test indicates that milex and economic growth are not cointegrated in any of the models containing nonstationary variables. Granger non-causality tests present a strong causality from miles to growth and a weak causality from growth to miles. These results tend to be corroborated by the impulse response and variance decomposition analyses. Overall, the results affirm previous findings that milex promotes economic growth. This has a strong policy implication for Nigeria. Given the persistent problem of conflict, terrorism, and insecurity in the country on one hand, and the rising need for public spending in the non-military sectors on the other, it is necessary for the government to balance its spending between the military and civilian sectors so that the benefits accruing from the military will not create a loss of opportunities in other sectors. [ABSTRACT FROM AUTHOR]

It is generally believed that high levels of military expenditures hamper economic growth because it crowds out investment. In this study, we investigate how defense spending affects economic growth in the 50 developing countries over the period 2010 to 2016. The results reveal that there is a positive and significant relationship between defense spending and economic growth in the developing countries. It means that, when economic growth, it encourages military sector to spend more, and also population is directly related to economic growth, meaning that when population increase, it rises military expenditure in the developing countries. [ABSTRACT FROM AUTHOR]

This study aims to empirically test the effects of military expenditure on external debt of 35 arms importing countries by using the annual panel data from the year 1995 to 2016. The panel was divided into two income classes (upper-middle and lower-middle), and the basic sample was also divided into five different regions (Middle-East and North Africa, South and East Asia, Latin America, Europe and Central Asia, and Sub-Saharan Africa) to achieve further robustness in the study. The empirical results of pooled mean group estimators suggest that military expenditure generally increases the external debt burden in the studied countries. More specifically, it was noted that military expenditure decreases external debt in Europe and Central Asia. Moreover, it was found that the interaction term of military expenditure and growth rate is positive and significant in all of the sub-samples, except upper-middle class, the Middle East and North Africa, and Latin American regions. Thus, it may be concluded that military expenditure often increases external debt burden in countries where the debt management system is weak. Countries with weaker debt management systems need to devise economic policies that curtail their military expenditure, reduce their external debt and improve their economic condition. [ABSTRACT FROM AUTHOR]

This paper employs the mixed frequency vector autoregression (MF-VAR) to discuss the causal link between crude oil dependence and military expenditure in China. The empirical results demonstrate that the crude oil dependence Granger causes military expenditure and accounts for 66.8% of the long-run forecast error variance decomposition. That means the MF-VAR model owns stronger explanatory and asymptotic powers than conventional VAR with single frequency data. Besides, the impulse-response analysis finds time varying relationship between crude oil dependence and military expenditure across four quarters within one year period. Therefore, the Chinese People's Liberation Army, especially its Navy, is needed to take responsibility and active activities to assure crude oil transport security. Government, enterprises and institutes should increase investment in military innovation to promote the upgrading of weapons and equipment. The peaceful rise strategy should be reasserted to construct harmonious international relations, which is helpful for crude oil security, foreign energy investment and reduce unnecessary military expenditure.

This study investigates the long run equilibrium relationship among military expenditure, financial development, energy use, economic growth and environmental degradation in Turkey for the period of 1960–2014. Ecological footprint and carbon dioxide emissions are used as separate proxies for environmental degradation. Fully modified ordinary least squares (FMOLS) estimator results suggest that military expenditure, energy use and economic growth increase the environmental degradation while financial development improves the environmental quality in Turkey. Toda Yamamoto (1995) causality test results reveal that there is a unidirectional causality running from military expenditure to CO2 emissions and ecological footprint; and a bidirectional causality between military expenditure and economic growth. The findings of the study confirm the existence of destruction theory for the case of Turkey. [ABSTRACT FROM AUTHOR]

This paper clarifies one of the puzzling results of the economic growth literature: the impact of military expenditure is frequently found to be non-significant or negative, yet most countries spend a large fraction of their GDP on defense and the military. We start by empirical evaluation of the non-linear interactions between military expenditure, external threats, corruption, and other relevant controls. While growth falls with higher levels of military spending, given the values of the other independent variables, we show that military expenditure in the presence of threats increases growth. We explain the presence of these non-linearities in an extended version of Barro and Sala-i-Martin (1995), allowing the dependence of growth on the severity of external threats, and on the effective military expenditure associated with these threats.

This paper is an attempt to examine the relationship between military expenditure and economic growth in South Asia region. Panel fixed effect model has been estimated using panel data from five South Asian Countries. The results indicate positive effect of military expenditure on economic growth but significantly less compared to alternative uses of scare resources as non-military expenditure. This study raises an important issue of huge opportunity cost of military expenditure and foregone opportunity of economic growth. The paper concludes that the boosting of economic growth through higher military expenditure is neither effective nor efficient way of achieving higher growth.

This study examines the convergence in military expenditure and economic growth for a panel of 35 African countries between 1990 and 2015. We employ the Phillips and Sul methodology to achieve our objective. Overall, the results at Africa level reveal no evidence of convergence in military expenditure and growth. However, after robustness tests, the final club classification results do support the hypothesis of club convergence for the two variables. The results of the analysis show that there exist: (i) two convergence clubs for military expenditure; and (ii) five convergence clubs for growth. The empirical findings further suggest that the Regional Economic Communities (RECs) form distinct convergent and divergent clubs, exhibiting considerable heterogeneity in the underlying defence and growth patterns. In addition, the empirics confirm that the countries in each region appear to have chosen dissimilar defence and growth transition paths. The policy implications are discussed in the concluding section of this study.

This study examines the convergence in military expenditure and economic growth for a panel of 35 African countries between 1990 and 2015. We employ the Phillips and Sul methodology to achieve our objective. Overall, the results at Africa level reveal no evidence of convergence in military expenditure and growth. However, after robustness tests, the final club classification results do support the hypothesis of club convergence for the two variables. The results of the analysis show that there exist: (i) two convergence clubs for military expenditure; and (ii) five convergence clubs for growth. The empirical findings further suggest that the Regional Economic Communities (RECs) form distinct convergent and divergent clubs, exhibiting considerable heterogeneity in the underlying defence and growth patterns. In addition, the empirics confirm that the countries in each region appear to have chosen dissimilar defence and growth transition paths. The policy implications are discussed in the concluding section of this study. [ABSTRACT FROM AUTHOR]

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. [ABSTRACT FROM AUTHOR]

This study investigates the relationship between military expenditure, state fragility and economic growth at regional economic communities of African countries. With a balanced panel of 34 African countries spanning 1990–2015. The variables of interest for this study include military expenditure, state fragility and economic growth. To measure economic growth, real gross domestic product per capita serves as the proxy, while state fragility is measured by the state fragility index, and military expenditure by military expenditure as a percentage share of GDP. We utilise: panel causality and cointegration test; and the generalised method of moments (GMM) estimation techniques. The causality results suggest a feedback relationship among our variables of interest and this justified the use of GMM. Our analysis suggests that the effect of military expenditure on growth is negative at Africa level with significant regional economic level differences, and this effect is influenced in the presence of state fragility. This imply that there exist complementary effects between military expenditure and state fragility on growth. A cut in military expenditure and a consideration of other means of dealing with fragility issues as an alternative to joint regional militarised intervention of regional governments of African countries is recommended. [ABSTRACT FROM AUTHOR]

Using annual data collected from 1988 to 2015, this study provides evidence of a non-linear relationship between military spending, economic growth and other growth determinants for the South African economy. The empirical study is based on estimates of a logistic smooth transition regression (LSTR) model and our empirical results point to an inverted U-shaped relationship between military spending and economic growth for the data. Furthermore, our empirical results suggest that the current levels of military spending, as a component of total government expenditure, are too high in the South African economy and need to be transferred towards more productive non-military expenditure in order to improve the performance of economic growth and other growth determinants. [ABSTRACT FROM AUTHOR]

The paper examines the relation between military expenditure and three growth and development related variables (GDP growth, GDP per capita growth and Industry Value Added growth) in 31 transition economies during the 1985-2018 period and in a series of different samples by applying the Panel VAR GMM methodology. The empirical results reveal different patterns of the significant association between military expenditure and the examined growth and development variables, which is positive for certain samples and negative for others. The causality analysis shows that in the vast majority of the cases, the causality direction runs from military expenditure towards the examined growth and development related variables. In addition, the analysis provides uniform evidence on certain positive impacts of defense expenditure on population growth and schooling and negative impacts on savings. The results from the Ex-Soviet Economies are of particular interest as the association between military expenditure and the examined growth-related variables, becomes positive. We interpret the results in the context of the wider characteristics of the particular geographical area. [ABSTRACT FROM AUTHOR]

The purpose of this article is to explore the development of Russian military spending in light of weak and negative growth of the Russian economy and to look at the reasons for the economic decline that has developed after the economic crisis in 2009 and is due to long-term internal structural factors that have existed since the mid-2000s. The confidence crisis resulting from Russia's aggression against Ukraine 2014, Western sanctions and falling oil prices has further aggravated these tendencies and the economy is now contracting. The main conclusions are that the share of the defense budget in GDP has risen substantially, but there is still a trade-off between defense and other public spending in the budget. Political reform would be necessary to implement market institutions and revive the economy.

This paper has made an attempt to examine relationship between military expenditure and economic growth using 56 country panel data spanning over 1995—2011. Panel fixed effect model has been estimated for all 56 countries and sub-groups classified on the basis of World Bank income criteria. The results of this study indicate a positive effect of military expenditure on economic growth but this positive effect is negligible compared to the alternative uses of scare resources on non-military expenditure. Thus, the effect of military expenditure on economic growth is very low compared to the effect of expenditure on capital formation, hence military expenditure as a sub-optimal means of increasing economic growth compared to alternative uses of government spending on formation of fixed capital. This study raises an important argument of huge opportunity cost of military expenditure. The present study concludes that the boosting of economic growth through higher military expenditure is neither effective nor efficient way of achieving higher growth in the economy.

Copyright of Journal of Entrepreneurship & Development / Girisimcilik ve Kalkinma Dergisi is the property of Journal of Entrepreneurship & Development / Girisimcilik ve Kalkinma Dergisi and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Using a sample of 272 meta-observations drawn from 48 primary studies, this paper conducts a meta-analysis of the empirical literature that examines the impact of military expenditure on economic growth. We find that existing studies indicate growth-retarding effects of military expenditure. The results from the meta-regression analysis suggest that the effect size estimate is strongly influenced by study variations. Specifically, we find that underlying theoretical models, econometric specifications, and data type as well as data period are relevant factors that explain the heterogeneity in the military expenditure-growth literature. Results also show that positive effects of military expenditure on growth are more pronounced for developed countries than less developed countries. [ABSTRACT FROM AUTHOR]

This study investigates the effect of military expenditure on the exploding external debt in five major South Asian economies, i.e. Pakistan, Bangladesh, India, Nepal and Sri Lanka from 1990 to 2015 using panel fixed effect regression model. The estimated result reveals that the external debt of selected South Asian countries is positively determined by their military expenditure, and negatively explained by their domestic investment activities. The study urges the efficient utilization of available capital resources into more productive investment activities to create employment for the labor force. The future prosperity of the region lies in the peaceful resolution of all outstanding disputes and a corresponding reduction in military spending that can make the region safe for domestic and international investments. [ABSTRACT FROM AUTHOR]

The economic growth effects of military expenditure have been the subject of a large literature in defence economics. Theories on the economic impacts of military expenditure greatly differ and include arguments that they either enhance economic growth or crowd out productive investments. Empirical literature on defence expenditure and economic growth nexus generally employs linear specifications to investigate the impact of defence expenditures on economic growth. Although it is now well established that many economic variables may have a non-linear data-generating mechanism, it seems that this reality has long been neglected in empirical work on defence–growth nexus. This paper attempts to fill this gap by employing non-linear panel data models to examine the effects of military expenditures on economic growth for Middle Eastern countries and Turkey, for the time period 1988–2012. Results show that the effect of military expenditure on economic growth is nonlinear such that the state of the economy actually determines the effect of the former on the latter. This is important not only in showing asymmetric relationship between these variables but also in revealing the reasons of mixed results of earlier literature. [ABSTRACT FROM AUTHOR]

This study investigates the impact of military expenditures on income inequality in Pakistan using data over the period of 1972-2012. For this purpose, we applied the ARDL bounds testing cointegration approach which confirmed the presence of long-run equilibrium relationship between military expenditure and income inequality. Furthermore, empirical analysis indicates that military spending has a positive impact on income inequality. The analysis of Granger causality, Toda-Yamamoto Modified Wald test and variance decomposition approaches confirm the presence of unidirectional causality running from military expenditure to income inequality. The findings of our study suggest that higher military expenditure leads to higher income inequality in Pakistan. Therefore, we advise the policy makers to focus more on the policies which can increase the economic activities in the country and eventually reduce income inequality. [ABSTRACT FROM AUTHOR]

This paper seeks to reinvestigate the relationship between military expenditure and economic growth by making use of the augmented Solow growth model. It also tends to explore the combined effect of military spending and armed conflicts on growth rate. Since the literature pertaining to defense economics depicts no consensus over the effects of military expenditure on the economy, the ongoing debate still becomes a topic of interest for many economists. This study reviews the recent publications in this regard and aims to contribute to the existing literature by making use of the most recent data for a pool of 61 countries. The theoretical framework is based on the augmented Solow growth model introduced by Mankiw et al. (1992) and first applied by Knight et al. (1996). Incorporating the same model used by Dunne (2005), this paper endeavors to access the impact military expenditure exerts on growth. Data for the period of 1988-2015 is employed for a pool of countries and a well-known theoretical model, fixed effect estimator, also known as the Least Square Dummy Variable (LSDV) has been used as a robust econometric technique. Findings of our empirical estimation suggest that military expenditure and arms imports have a negative impact on GDP per capita but military expenditure in the presence of external conflicts also has a negative and significant impact on growth, which is contrary to most of the earlier findings in literature. Our results imply that while spending on military acts as a burden for the economic growth, frequent interstate conflicts make it crucial for countries to spend further on their military sector which can slow down the economic growth. [ABSTRACT FROM AUTHOR]

The relationship between economic growth and military expenditure has been extensively studied but its findings are inconclusive and contradictory. The primary reasons behind such disparities include the linear and nonlinear behavior of military expenditure on economic growth and the analysis of different techniques. This study examines the effect of military expenditure on economic growth in Greece and Turkey, which have higher military expenditure burden among the NATO 1 1 NATO – North Atlantic Treaty Organization. countries using a modified Barro model. The autoregressive distributive lag bounds testing (ARDL) for cointegration is used to determine the long run effect. A vector error correction model (VECM) has been used to analyze the short run effect between the variables. The military expenditure displays a significant negative effect on economic growth for Turkey for both short and long run. In contrast, there is no significant military expenditure effect on economic growth for Greece. [ABSTRACT FROM AUTHOR]

This investigation re-examines the potential sources of positive externalities for the relationship between military spending and economic growth using recent advances in panel estimation methods and a large data-set on military expenditure. The investigation provides a new analysis on the relationship between conflict, corruption, natural resources and military expenditure and their direct and indirect effects on economic growth. The analysis finds that the impact of military expenditure on growth is generally negative as in the literature, but that it is not significantly detrimental for countries facing higher internal threats and for countries with large natural resource wealth once corruption levels are accounted for. [ABSTRACT FROM PUBLISHER]