Do Defence Expenditures Spur Gdp? A Panel Analysis From Oecd and Non‐oecd Countries

Lee, Chien‐Chiang; Chen, Sheng‐Tung

doi:10.1080/10242690500452706

Cited by 41 publications

(25 citation statements)

References 39 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…The seminal work of Benoit (1973Benoit ( , 1978 has spurred an increasing attention on the economic impact of defence spending with the relevant literature steadily expanding ever since (inter alia : Chowdhury, 1991;Dakurah et al, 2001;Sezgin, 2001;Atesoglu, 2002;Dunne et al, 2002;Abu-Bader and Abu-Qarm, 2003;Cuaresma and Reitschuler, 2004;Halicioglu, 2004;Bas, 2005;Yildirim et al, 2005;Kollias et al, 2007;Lee and Chen, 2007;Özsoy, 2008;Wijeweera and Webb, 2009). Broadly speaking, the findings are mixed and inconclusive with results depending on the country or sample of countries, the time period or the methodology used (for a survey of the findings and the issues see Dunne et al, 2005).…”

Section: Introductionmentioning

confidence: 92%

Does Defence Spending Impede Economic Growth? Cointegration and Causality Analysis for Pakistan

Shahbaz

Afza

Shabbir

2013

Defence and Peace Economics

View full text Add to dashboard Cite

This study revisits the relationship between defence spending and economic growth via a Keynesian model in Pakistan using the autoregressive distributive lag bounds testing approach to cointegration. Empirical evidence suggests a stable cointegration relationship between defence spending and economic growth. An increase in defence spending reduces the pace of economic growth confirming the validity of Keynesian hypothesis in this case. Current economic growth is positively linked with economic growth of previous periods while a rise in nonmilitary expenditures boosts economic growth. Interest rate is inversely associated with economic growth. Finally, unidirectional causality running from military spending to economic growth is found.

show abstract

Section: Introductionmentioning

confidence: 92%

Does Defence Spending Impede Economic Growth? Cointegration and Causality Analysis for Pakistan

Shahbaz

Afza

Shabbir

2013

Defence and Peace Economics

View full text Add to dashboard Cite

show abstract

“…Study of relationship between defense spending and growth rate of economy has attracted lot of attraction in recent economic literature (Wijeweera and Webb, 2009;Özsoy, 2008;Kollias et al, 2007;Lee and Chen, 2007;Bas, 2005;Yildirim et al, 2005;Cuaresma and Reitschuler, 2004;Halicioglu, 2004;Abu-Qarm, 2003;Atesoglu, 2002;Dunne et al, 2002;Abu-Bader and Sezgin, 2001;Dakurah et al, 2001;Chowdhury, 1991). This all started with the seminal work by Beniot (1973).…”

Section: Introductionmentioning

confidence: 99%

The Impact of Military Expenditures on Economic Growth of Pakistan

Ajmair¹,

Hussain²,

Abbassi³

et al. 2018

AEF

View full text Add to dashboard Cite

The purpose of this research paper is to examine the long run relationship between military expenditure, number of persons in military and economic growth. To fulfill this, the study used ARDL approach for annual time series data from 1990 to 2015. The results show that Pakistan military expenditures are insignificant (military burden for the country is statically insignificant) and number of persons in military are positively and significantly related with GDP growth in long run. The error correction term is negative and significant which shows that short run relationship exists among economic growth, military expenditures and number of army persons. In short run military expenditure and number of persons in military are positively and significantly related with GDP growth but in long run only number of military persons affects economic growth positively and significantly.

show abstract

“…A study by Narayan and Singh (2007) Kollias et al (2007), among others. In the long run, military expenditure and GDP were found to have Granger caused each other both in OECD and non-OECD countries (Lee and Chen, 2007). On the other hand, the results from a study by Lai et al (2005) showed the existence of a bidirectional causality relationship between defense spending and economic growth in Taiwan both in the short and long run.…”

Section: Review Of Related Literaturementioning

confidence: 89%

Military expenditure and the economy of Zimbabwe

Tsaurai¹

2014

JGR

View full text Add to dashboard Cite

This study examines the causal relationship between military expenditure and economic growth in Zimbabwe. The causality relationship between government military expenditure and economic growth has so far received attention from many economists, the dominant ones being Wagner (1890) and Keynes (1936). According to literature, there currently exist four perspectives around the causality relationship military expenditure and economic growth. The first perspective by Keynes (1936) suggests that military expenditure spur economic growth whilst the second perspective by Wagner (1890) mentions that economic growth affects military expenditure. The third perspective says both military expenditure and economic growth affects each other whilst the fourth perspective suggests the existence of no causality relationship at all between military expenditure and economic growth. The results of this study proves that military expenditure does not directly influence economic growth whilst economic growth does also not directly influence military expenditure both in the short and long run.

show abstract

Do Defence Expenditures Spur Gdp? A Panel Analysis From Oecd and Non‐oecd Countries

Cited by 41 publications

References 39 publications

Does Defence Spending Impede Economic Growth? Cointegration and Causality Analysis for Pakistan

Does Defence Spending Impede Economic Growth? Cointegration and Causality Analysis for Pakistan

The Impact of Military Expenditures on Economic Growth of Pakistan

Military expenditure and the economy of Zimbabwe

Contact Info

Product

Resources

About