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Does Military Spending Nonlinearly Affect Economic Growth in South Africa?
- Source :
- Defence & Peace Economics; Jul2019, Vol. 30 Issue 4, p474-487, 14p
- Publication Year :
- 2019
-
Abstract
- 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]
Details
- Language :
- English
- ISSN :
- 10242694
- Volume :
- 30
- Issue :
- 4
- Database :
- Complementary Index
- Journal :
- Defence & Peace Economics
- Publication Type :
- Academic Journal
- Accession number :
- 136978689
- Full Text :
- https://doi.org/10.1080/10242694.2017.1361272