Defence Expenditure–Government Debt Nexus in the Context of Sustainability in Selected Small European Union Countries

Česnuitytè, Vida

doi:10.3390/su13126669

Cited by 5 publications

(2 citation statements)

References 52 publications

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“…This is consistent with the results of this investigation, which showed a significant association between defence funding and real GDP per capita. It is also noticeable that the results of this investigation contradict the previous study conducted by Dudzevičiūtė et. al.…”

Section: Discussioncontrasting

confidence: 99%

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Does the Funding of the Defence Sector Depend on Economic Factors in the Long Run? The Cases of Estonia, Latvia, and Lithuania

Dudzevičiūtė

2023

PPAdm

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The purpose of this publication is to study the dependence of defence funding on economic factors, namely the prosperity of the country, economic growth, the budget deficit, gross government debt, and inflation rate. The investigation uses secondary data obtained from the Eurostat database and covers the period from 1997 to 2021. The author analyses three Baltic countries such as Estonia, Latvia, and Lithuania, to ascertain which economic factors have a statistically significant effect on defence sector funding. For this purpose, the author applies correlation analysis and automatic linear modelling (ALM). The findings of the investigation showed differences and similarities between the countries under consideration. In the case of Estonia, defence funding is significantly affected by the prosperity of the country, which is expressed in real GDP per capita, and gross government debt. These economic factors explain 92.6 per cent of defence funding. The cases of Latvia and Lithuania are very similar in terms of the influence of economic factors on defence spending. In these countries, the tendencies of real GDP per capita significantly effect on defence funding. This influence is slightly different and amounts to 76.2 and 78.4 per cent, for Latvia and Lithuania, respectively. The insights of the research can be useful to the governments of these nations when making decisions about defence funding aimed at ensuring security in the Baltic region.

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Section: Discussioncontrasting

confidence: 99%

“…(2021) found a positive association between GDP and defence spending in Latvia and Lithuania. Dudzevičiūtė et. al.…”

Section: Literature Reviewmentioning

confidence: 99%

Does the Funding of the Defence Sector Depend on Economic Factors in the Long Run? The Cases of Estonia, Latvia, and Lithuania

Dudzevičiūtė

2023

PPAdm

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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

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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.

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Military spending, public debt, and economic growth in Cameroon

Kengdo

2023

Sustainable Futures

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Defence Expenditure–Government Debt Nexus in the Context of Sustainability in Selected Small European Union Countries

Cited by 5 publications

References 52 publications

Does the Funding of the Defence Sector Depend on Economic Factors in the Long Run? The Cases of Estonia, Latvia, and Lithuania

Does the Funding of the Defence Sector Depend on Economic Factors in the Long Run? The Cases of Estonia, Latvia, and Lithuania

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

Military spending, public debt, and economic growth in Cameroon

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