TY - JOUR
T1 - Military Spending and Economic Growth in South Asia
T2 - A Panel Data Analysis
AU - Wijeweera, Albert
AU - Webb, Matthew J.
PY - 2011/10
Y1 - 2011/10
N2 - Despite the large number and variety of studies addressing the relationship between military spending and economic growth, a consensus regarding the exact nature of any relationship between the two has proven elusive. This study uses a panel co-integration approach to examine the relationship between military spending and economic growth in the five South Asian countries of India, Pakistan, Nepal, Sri Lanka and Bangladesh over the period of 1988-2007. It finds that a 1% increase in military spending increases real GDP by only 0.04%, suggesting that the substantial amount of public expenditure that is currently directed towards military purposes in these countries has a negligible impact upon economic growth.
AB - Despite the large number and variety of studies addressing the relationship between military spending and economic growth, a consensus regarding the exact nature of any relationship between the two has proven elusive. This study uses a panel co-integration approach to examine the relationship between military spending and economic growth in the five South Asian countries of India, Pakistan, Nepal, Sri Lanka and Bangladesh over the period of 1988-2007. It finds that a 1% increase in military spending increases real GDP by only 0.04%, suggesting that the substantial amount of public expenditure that is currently directed towards military purposes in these countries has a negligible impact upon economic growth.
KW - Economic growth
KW - Military spending
KW - Panel co-integration
KW - South Asian countries
UR - http://www.scopus.com/inward/record.url?scp=84859076104&partnerID=8YFLogxK
U2 - 10.1080/10242694.2010.533905
DO - 10.1080/10242694.2010.533905
M3 - Article
AN - SCOPUS:84859076104
SN - 1024-2694
VL - 22
SP - 545
EP - 554
JO - Defence and Peace Economics
JF - Defence and Peace Economics
IS - 5
ER -
