scholarly journals Relationship between Military Expenditure and Economic Growth in ASEAN: Evidence from Indonesia

2013 ◽  
Vol 1 (2) ◽  
pp. 90
Author(s):  
Tangguh Chairil ◽  
Dedy Sinaga ◽  
Annisa Febrianti
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Cold War ◽  
Causal Relationship ◽  
Military Expenditure ◽  
Post Cold War ◽  
Increasing Trend ◽  
Multiplier Effects ◽  
The Relationship ◽  
Positive Effect

World military expenditure in post-Cold War world shows increasing trend especially in ASEAN region; Indonesia is no exception. The trend may have been supported by the argument that military expenditure has positive multiplier effects on economic growth. Unfortunately, there have been not too many studies on the effect of military expenditure on economic growth in the Indonesia context. This paper examines the topic by first reviewing literature on the relationship between military expenditure and economic growth, then by empirically testing the causal relationship between the two variables by using the Augmented Sollow Growth Model. The result shows that Indonesia's military expenditure has positive effect on the country's economic growth, which is most possibly caused by development of human capital as effect of military expenditure.

scholarly journals Military spending, armed conflict and economic growth in developing countries in the post-Cold War era

2017 ◽  
Vol 44 (1) ◽  
pp. 47-68 ◽  
Author(s):  
Nusrate Aziz ◽  
M. Niaz Asadullah
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Cold War ◽  
Military Spending ◽  
Military Expenditure ◽  
Internal Conflict ◽  
Content Type ◽  
Post Cold War ◽  
Fixed And Random Effects ◽  
The Relationship

Purpose While the relationship between military expenditure and economic growth during the Cold War period is well-researched, relatively less is known on the issue for the post-Cold War era. Equally how the relationship varies with respect to exposure to conflict is also not fully examined. Therefore, the purpose of this paper is to investigate the causal impact of military expenditure on growth in the presence of internal and external threats for the period 1990-2013 using data from 70 developing countries. Design/methodology/approach The main estimates are based on the generalized method of moments (GMM) regression model. But for comparison purposes, the authors also report estimates using fixed and random effects as well as pooled cross-section regressions. The regression specification accounts for non-linear effect of military expenditure allowing for interaction with conflict variable (where distinction is made between external and internal conflict). Findings The analysis indicates that methods as well as model specification matter in studying the effect of military spending on growth. Full sample estimates based on GMM, fixed, and random effects models suggest a negative and statistically significant effect of military expenditure. However, fixed effects estimate becomes insignificant for low-income countries. The effect of military spending is also insignificant in the cross-sectional OLS model if conflict is not considered. When the regression model additionally controls for conflict, the effect of military spending conditional upon (internal) conflict exposure is significant and positive. No such effect is present conditional upon external threat. Research limitations/implications One important limitation of the analysis is the small sample size – the authors had to restrict analysis to 70 low and middle-income countries for which the authors could construct post-Cold War panel data on military expenditure along with information on armed conflict exposure (the later from the Uppsala Conflict Data Program, 2015). Originality/value To the best of the author’s knowledge, this is the first paper to examine the joint impact of military expenditure and conflict on economic growth in post-Cold War period in a sample of developing countries. Moreover, an attempt is made to review and revisit the large Cold War literature where studies vary considerably in terms findings. A key reason for this is the somewhat ad hoc choice of econometric methods – most rely on cross-section data and rarely conduct sensitivity analysis. The authors instead rely on panel data estimates but also report results based on naïve models for comparison purposes.

scholarly journals Factors which are Affecting Human Capital in Singapore

2021 ◽  
Author(s):  
S M Nazmuz Sakib
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Economic Development ◽  
Significant Positive Effect ◽  
Hours Worked ◽  
Correlation Tests ◽  
Human Capital Index ◽  
The Relationship ◽  
Positive Effect ◽  
Growth Indicators

The human capital index is a multivariate variable used to measure the assessment of human resource productivity in the future. Human capital has a connection with economic development. Moreover, the study looks to analyses the relationship between Human Capital and Economic Growth indicators such as HCI and GDP. Human Capital relates to the development of individual skills to make them function more profitable for the national economy. The study was aimed at investigating the effect of population, the number of people engaged and the average annual hours worked by engaged persons on the human capital index. The analysis was in SPSS for the findings. Correlation tests were used for analysis. The study revealed that population, the number of people engaged and the average annual hours worked by engaged persons had a significant positive effect on the human capital index.

Causality between terrorism and economic growth

2013 ◽  
Vol 50 (1) ◽  
pp. 91-104 ◽  
Author(s):  
Daniel Meierrieks ◽  
Thomas Gries
Keyword(s):  
Economic Growth ◽  
Cold War ◽  
Causal Relationship ◽  
Latin American ◽  
Political Instability ◽  
Post Cold War ◽  
Cultural Affiliation ◽  
Terrorist Activity ◽  
Cold War Era ◽  
The Cold War

This article analyzes the causal relationship between terrorism and economic growth, running a series of tests for Granger non–causality with panel data for a maximum of 160 countries from 1970 to 2007. The authors find that the causal relationship between terrorism and growth is heterogeneous over time and across space. They argue that the temporal causal heterogeneity can be explained by shifting geographical and ideological patterns in terrorism associated with the end of the Cold War. Different causal mechanics across countries are ascribed to a variety of country–specific factors (the level of politico–economic development, a country’s cultural affiliation, the intensity and persistence of terrorist activity, and the level of political instability). These factors govern a country’s robustness to shocks from terrorism and the extent to which terrorism is motivated by economic factors. For the Cold War era, economic growth is found to have swayed terrorism for Latin American countries in intermediate development positions that were politically unstable and experienced strong terrorist activity. For the post–Cold War era, terrorism is found to be detrimental to growth for African and Islamic countries with low levels of political openness, high levels of political instability, and strong terrorist activity. The study’s findings help to better understand the conflicting evidence on the terrorism–economy nexus and to give more solid counter-terrorism advice.

scholarly journals The Effects of New Entries on Economic Growth: a Story on Advanced and Laggard Sectors

2021 ◽  
Author(s):  
◽  
Vera Hansen
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Theoretical Model ◽  
Empirical Evidence ◽  
Production Function ◽  
Physical Capital ◽  
Endogenous Growth Model ◽  
The Relationship ◽  
Positive Effect ◽  
Douglas Production Function

<p>The main goal of this thesis is to construct a theoretical model that provides an explanation for the relationship between growth and new entry that is consistent with empirical evidence. The model is a four sector endogenous growth model in which there is a technologically advanced and a technologically laggard consumption goods which are imperfect substitutes. The production of each good requires its own stock of human capital and physical capital. The accumulation of physical capital and human capital in each industry is modelled by a Cobb-Douglas production function. The main result of the model is that new entries have a positive effect on the fraction of the existing stock of human capital devoted to the accumulation of human capital in both the advanced and laggard sectors. However, this effect is stronger in the advanced sectors than in the laggard sectors. This result is consistent with empirical evidence.</p>

scholarly journals The Effects of New Entries on Economic Growth: a Story on Advanced and Laggard Sectors

2021 ◽  
Author(s):  
◽  
Vera Hansen
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Theoretical Model ◽  
Empirical Evidence ◽  
Production Function ◽  
Physical Capital ◽  
Endogenous Growth Model ◽  
The Relationship ◽  
Positive Effect ◽  
Douglas Production Function

<p>The main goal of this thesis is to construct a theoretical model that provides an explanation for the relationship between growth and new entry that is consistent with empirical evidence. The model is a four sector endogenous growth model in which there is a technologically advanced and a technologically laggard consumption goods which are imperfect substitutes. The production of each good requires its own stock of human capital and physical capital. The accumulation of physical capital and human capital in each industry is modelled by a Cobb-Douglas production function. The main result of the model is that new entries have a positive effect on the fraction of the existing stock of human capital devoted to the accumulation of human capital in both the advanced and laggard sectors. However, this effect is stronger in the advanced sectors than in the laggard sectors. This result is consistent with empirical evidence.</p>

scholarly journals Factors Affecting Human Capital in Singapore

2021 ◽  
Author(s):  
S M Nazmuz Sakib
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Significant Positive Effect ◽  
Hours Worked ◽  
Factors Affecting ◽  
Correlation Tests ◽  
Human Capital Index ◽  
The Relationship ◽  
Positive Effect ◽  
Growth Indicators

The human capital index is a multivariate variable used to measure the assessment of human resource productivity in the future. Human capital has a connection with economic development. Moreover, the study looks to analyses the relationship between Human Capital and Economic Growth indicators such as HCI and GDP. Human Capital relates to the development of individual skills to make them function more profitable for the national economy. The study was aimed at investigating the effect of population, the number of people engaged and the average annual hours worked by engaged persons on the human capital index. The analysis was in SPSS for the findings. Correlation tests were used for analysis. The study revealed that population, the number of people engaged and the average annual hours worked by engaged persons had a significant positive effect on the human capital index.

scholarly journals The Effect of Fiscal Balance Funds on Local Economic Growth in Indonesia

2020 ◽  
Vol 006 (02) ◽  
pp. 297-304
Author(s):  
Priyo Anggono
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Central Government ◽  
Local Governance ◽  
Capital Expenditure ◽  
Fiscal Balance ◽  
Local Economic Growth ◽  
The Relationship ◽  
Positive Effect ◽  
Important Policy Implication

The fiscal balance funds are the funds from the central government for the local government, and it has become the main revenue for the local governance. As the main revenue, the fiscal balance funds could affect the local economic growth. By looking at the data from the period of 2011 to 2018, this essay investigates two things, first is the relationship between fiscal balance funds and the local economic growth. This essay also identifies what are the major determinants of local economic growth in Indonesia is. Furthermore, do the results differ across regional groups. The essay finds that the relationship between fiscal balance funds have positive effect on economic growth. With the most significant funds are the DAU and DAK. The results also confirm that increasing human capital would increase economic growth. This essay also finds that even though the results for regions vary, capital expenditure still shows positive effect for economic growth. The findings from this essay would have important policy implication for the central government in Indonesia in reviewing the fiscal balance policy and determining the priority sectors

Financial Intermediation and Growth: Theory and Some Cross-Country Evidence

1997 ◽  
Vol 36 (4II) ◽  
pp. 855-862
Author(s):  
Tayyeb Shabir
Keyword(s):  
Economic Growth ◽  
Financial Markets ◽  
Financial Intermediation ◽  
Empirical Estimates ◽  
Financial Liberalisation ◽  
Cross Country ◽  
Level Of Significance ◽  
The Relationship ◽  
Positive Effect ◽  
Theoretical Developments

Well-functioning financial markets can have a positive effect on economic growth by facilitating savings and more efficient allocation of capital. This paper characterises some of the recent theoretical developments that analyse the relationship between financial intermediation and economic growth and presents empirical estimates based on a model of the linkage between financially intermediated investment and growth for two separate groups of countries, developing and advanced. Empirical estimates for both groups suggest that financial intermediation through the efficiency of investment leads to a higher rate of growth per capita. The relevant coefficient estimates show a higher level of significance for the developing countries. This financial liberalisation in the form of deregulation and establishment and development of stock markets can be expected to lead to enhanced economic growth.

Constructing Identity in “Glocal” Politics

1998 ◽  
Vol 15 (3) ◽  
pp. 81-106
Author(s):  
M. A. Muqtedar Khan
Keyword(s):  
Cold War ◽  
International Relations ◽  
World Politics ◽  
Socioeconomic Conditions ◽  
Post Cold War ◽  
Important Concept ◽  
Construction Of Identity ◽  
The World ◽  
The Impact ◽  
The Relationship

This paper seeks to understand the impact of current global politicaland socioeconomic conditions on the construction of identity. I advancean argument based on a two-step logic. First, I challenge the characterizationof current socioeconomic conditions as one of globalization bymarshaling arguments and evidence that strongly suggest that along withglobalization, there are simultaneous processes of localization proliferatingin the world today. I contend that current conditions are indicative ofthings far exceeding the scope of globalization and that they can bedescribed more accurately as ccglocalization.~H’2a ving established thisclaim, I show how the processes of glocalization affect the constructionof Muslim identity.Why do I explore the relationship between glocalization and identityconstruction? Because it is significant. Those conversant with current theoreticaldebates within the discipline of international relations’ are awarethat identity has emerged as a significant explanatory construct in internationalrelations theory in the post-Cold War era.4 In this article, I discussthe emergence of identity as an important concept in world politics.The contemporary field of international relations is defined by threephilosophically distinct research programs? rationalists: constructivists,’and interpretivists.’ The moot issue is essentially a search for the mostimportant variable that can help explain or understand the behavior ofinternational actors and subsequently explain the nature of world politicsin order to minimize war and maximize peace.Rationalists contend that actors are basically rational actors who seekthe maximization of their interests, interests being understood primarilyin material terms and often calculated by utility functions maximizinggiven preferences? Interpretivists include postmodernists, critical theorists,and feminists, all of whom argue that basically the extant worldpolitical praxis or discourses “constitute” international agents and therebydetermine their actions, even as they reproduce world politics by ...

scholarly journals THE US POLICY SHIFT FROM ‘PIVOT TO ASIA’ TO ‘FREE INDO PACIFIC’: IMPLICATIONS FOR PAKISTAN

2021 ◽  
Vol 38 ◽  
pp. 1-21
Author(s):  
Tatheer Zahra Sherazi ◽  
Amna Mahmood
Keyword(s):  
Economic Growth ◽  
Cold War ◽  
The United States ◽  
Asia Pacific ◽  
Post Cold War ◽  
Pivot To Asia ◽  
The Us ◽  
Rise Of China ◽  
Offensive Realism ◽  
Policy Shift

Asia Pacific, which is extended Eastward to the states of Oceania, Westward to Pakistan, Southward to New Zealand, and Northward to Mongolia, is currently a pivot of the globe due to its economic growth. Since last two decades, it has got status of ‘growth center’ owing to its high economic growth rate. The United States (US) had been very active in Asia Pacific throughout the Cold War period, but in post-Cold War era, it was disengaged due to its pre-occupation in Middle East. However, the rise of China attracted US again with multiple arrangements at political, economic and social fronts. There are two world views about the US presence in Asia Pacific. The first one asserts that the Asia Pacific is more secure without the presence of US, while others takes the US presence as a patron for stability and solidarity within the region. The US policy of ‘Pivot to Asia’, ‘Asia Pacific’ commonly known as ‘Rebalancing’ ensured its new commitment of deep engagement in Southeast Asia. Policy shift under Trump administration from ‘Pivot to Asia’ to ‘Free Indo-Pacific’ has direct as well indirect implications for Pakistan. The study analyses the US strategies and polices under the theory of ‘Offensive Realism,’ where ‘rational powers uncertain of intentions and capable of military offensive strive to survive’. Analytical, descriptive approaches are adopted in order to analyse US ongoing strategies.

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