Military Expenditure, Economic Growth, and Foreign Policy Implications

2019 ◽  
pp. 836-857
Author(s):  
Bertha Z. Osie-Hwedie ◽  
Napoleon Kurantin
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Foreign Policy ◽  
High Growth ◽  
Economic Cost ◽  
Military Expenditure ◽  
Domestic Security ◽  
Long Run ◽  
Negative Effect ◽  
Short Run

The chapter discusses the nature of the relationship between military expenditure, economic growth, and foreign policy commitments, and the consequences on economic growth of apportioning an increased part of the gross domestic product to the military in developing countries of Ghana and Nigeria within the Economic Community of West Africa during 1986-2016. Military expenditure has generated controversy, especially in developing countries of Africa, as it competes with demands for sustainable growth and development. Applying the Johansen co-integration test and Granger causality, the results show that high growth rates have enabled the two countries to increase military spending, ensure their own domestic security, and fulfill international security commitments in the West African sub-region and internationally, with negative effect in the long-run and positive effect in the short run on economic growth. The lack of defense and military expenditure linkage with the wider economy is the resultant socio-economic cost recorded over the period under study.

Military Expenditure, Economic Growth, and Foreign Policy Implications

2018 ◽  
pp. 24-45
Author(s):  
Bertha Z. Osie-Hwedie ◽  
Napoleon Kurantin
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Foreign Policy ◽  
High Growth ◽  
Economic Cost ◽  
Military Expenditure ◽  
Domestic Security ◽  
Long Run ◽  
Negative Effect ◽  
Short Run

The chapter discusses the nature of the relationship between military expenditure, economic growth, and foreign policy commitments, and the consequences on economic growth of apportioning an increased part of the gross domestic product to the military in developing countries of Ghana and Nigeria within the Economic Community of West Africa during 1986-2016. Military expenditure has generated controversy, especially in developing countries of Africa, as it competes with demands for sustainable growth and development. Applying the Johansen co-integration test and Granger causality, the results show that high growth rates have enabled the two countries to increase military spending, ensure their own domestic security, and fulfill international security commitments in the West African sub-region and internationally, with negative effect in the long-run and positive effect in the short run on economic growth. The lack of defense and military expenditure linkage with the wider economy is the resultant socio-economic cost recorded over the period under study.

scholarly journals Effect of Institutional Quality and Wealth from Oil Revenue on Economic Growth in Oil-Exporting Developing Countries

2019 ◽  
Vol 11 (13) ◽  
pp. 3635 ◽  
Author(s):  
Adewale Samuel Hassan ◽  
Daniel Francois Meyer ◽  
Sebastian Kot
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Institutional Quality ◽  
Linear Interaction ◽  
Distributed Lag ◽  
Oil Revenue ◽  
Long Run ◽  
Negative Effect ◽  
Short Run ◽  
Oil Wealth

This article investigates the role of institutional quality in the oil wealth–economic growth nexus for 35 oil-exporting developing countries between 1984 and 2016. To achieve this objective, an empirical model was employed with linear interaction between oil wealth and institutional quality, and estimated by means of panel autoregressive distributed lag (ARDL) with a dynamic fixed effect estimator. From the results, a contingent effect of oil wealth on economic growth, both in the long run and in the short run, was established. Specifically, institutional quality was found to mitigate the negative effect of oil wealth on economic growth in the long run, while in the short run, institutional quality was found to enhance the positive effect of oil wealth on economic growth. Furthermore, the results provide the threshold levels of institutional quality, beyond which oil wealth enhances economic growth, both in the long run and in the short run, for the sampled countries. These results suggest that in order for oil-exporting developing countries to benefit from an increase in oil wealth, they must adopt appropriate policy measures to improve their levels of institutional quality and embed their entire oil wealth-generating mechanism in a sound institutional framework. Also of importance is that governments must ensure sustainable development through the benefits of wealth from oil.

scholarly journals The Asymmetric Relationship Between Military Expenditure, Economic Growth and Industrial Productivity: An Empirical Analysis of India, China and Pakistan Via the NARDL Approach

2021 ◽  
Vol 13 (1) ◽  
Author(s):  
Aamir Syed
Keyword(s):  
Economic Growth ◽  
Negative Impact ◽  
Positive Impact ◽  
Research Work ◽  
Military Expenditure ◽  
Economic Policies ◽  
Long Run ◽  
Negative Effect ◽  
Short Run ◽  
Industrial Productivity

This research work aims to verify how military expenditure promotes economic growth and industrial productivity, as suggested by the Military Keynesianism postulate. The NARDL method is employed to achieve the above objective on the panel data of India, China, and Pakistan, covering the period between 1990 and 2018. The study finds that the positive and negative impact of military expenditure has a significant positive and negative effect on economic growth in the long run for China and India; however, in the short-run, only positive impact favors economic growth. Thus, there is a symmetric effect in the short-run and an asymmetric impact in the long-run. This asymmetric result supports the work of Military Keynesianism, helping policymakers in devising appropriate macro-economic policies.

scholarly journals Dynamic Causal Relationships among GDP, Exports, and Foreign Direct Investment (FDI) in the Developing Countries

2013 ◽  
Vol 14 ◽  
pp. 1-19 ◽  
Author(s):  
Mohsen Mehrara ◽  
Amin Haghnejad ◽  
Jalal Dehnavi ◽  
Fereshteh Jandaghi Meybodi
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Foreign Direct Investment ◽  
Strong Evidence ◽  
Direct Investment ◽  
The Other ◽  
Fdi Inflows ◽  
Long Run ◽  
Short Run ◽  
Growth Hypothesis

Using panel techniques, this paper estimates the causality among economic growth, exports, and Foreign Direct Investment (FDI) inflows for developing countries over the period of 1980 to 2008. The study indicates that; firstly, there is strong evidence of bidirectional causality between economic growth and FDI inflows. Secondly, the exports-led growth hypothesis is supported by the finding of unidirectional causality running from exports to economic growth in both the short-run and the long-run. Thirdly, export is not Granger caused by economic growth and FDI inflow in either the short run or the long run. On the basis of the obtained results, it is recommended that outward-oriented strategies and policies of attracting FDI be pursued by developing countries to achieve higher rates of economic growth. On the other hand, the countries can increase FDI inflows by stimulating their economic growth.

scholarly journals Inflation and Unemployment Trade-off: Is Phillips Curve True for African Developing Countries? Evidence from Sudan

2021 ◽  
Vol 4 (3) ◽  
Author(s):  
Omer Allagabo Omer Mustafa
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Phillips Curve ◽  
Economic Thought ◽  
Trade Off ◽  
Long Run ◽  
Short Run ◽  
Wage Inflation ◽  
The Relationship

The relationship between wage inflation and unemployment (Phillips Curve) is controversial in economic thought, and the controversy is centered around whether there is always a trade-off or not. If this relationship is negative it is called The short-run Fillips Curve. However, in the long run, this relationship may probable not exist. The matter of how inflation and unemployment influence economic growth, is debatably among macroeconomic policymakers. This study examines the behavior of the Phillips Curve in Sudan and its effect on economic growth.

scholarly journals HIGHER EDUCATION SUBSIDY POLICY AND R&D-BASED GROWTH

2019 ◽  
Vol 24 (8) ◽  
pp. 2129-2168 ◽  
Author(s):  
Takaaki Morimoto ◽  
Ken Tabata
Keyword(s):  
Higher Education ◽  
Economic Growth ◽  
Market Structure ◽  
Overlapping Generations Model ◽  
Subsidy Policy ◽  
Mass Higher Education ◽  
Long Run ◽  
Negative Effect ◽  
Short Run ◽  
Education Subsidy

We examine how a subsidy policy for encouraging more individuals to pursue higher education affects economic growth in an overlapping generations model of R&D-based growth, including both product development and process innovation. We show that such a policy may have a negative effect on the long-run economic growth rate. When the market structure adjusts partially in the short run, the effect of an education subsidy on economic growth is ambiguous and depends on the values of the parameters. However, when the market structure adjusts fully in the long run, the education subsidy expands the number of firms but reduces economic growth. These unfavorable predictions of an education subsidy on economic growth are partly consistent with the empirical findings that mass higher education does not necessarily lead to higher economic growth.

scholarly journals R&D Expenditure R&D Expenditure as an Accelerator of Economic Growth with Special Reference to Developing Countries

2021 ◽  
Vol 7 (3) ◽  
Author(s):  
Tariq Mahmood Ali ◽  
Adiqa Kausar Kiani ◽  
Tariq Bashir ◽  
Talah Numan Khan
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Developing Economies ◽  
Positive Association ◽  
Estimation Model ◽  
Panel Ardl ◽  
Long Run ◽  
Short Run ◽  
The Impact ◽  
D Investment

Purpose: In this network age, among the other factors which increase economic growth, the R&D activities, a pivotal and effective factor, carried out by a country. The present study attempts to investigate the empirical R&D expenditure-economic growth nexus in developing and developed economies, and also provides useful insight about how R&D investment works to enhance the economic growth of a country. Design/Methodology/Approach: In this regard, 21 years data of top 100 economies of the world from 1995 to 2015 has been utilized. The Panel ARD Model approach has been preferred to explore the impact of R&D investment on economic growth (GDP). For construction of the estimation model, five different variables are used. In order to accomplish the results, along with analysing the data of 100 countries a whole, analysis has also been made by dividing countries into different categories and groups. Overall, the Panel ARDL test has been performed on nine different groups of countries. Findings: The results reveal that, ceteris paribus, there is a strong positive association between R&D expenditure and economic growth (GDP) in the long-run; 1% increase in GERD leads to 0.07% increase in GDP. However, the impact in the developing countries (0.043%) is lower compared to the developed OECD countries (0.27%). No impact of the R&D expenditure on economic growth is observed in the short-run. Implications/Originality/Value: The study presents some thought-provoking ideas, policy recommendations and implications for the policy makers, planners and researchers, especially in the context of developing economies.  

scholarly journals Poverty and Agriculture in Southern Africa Revisited: A Panel Causality Perspective

SAGE Open ◽  
2019 ◽  
Vol 9 (1) ◽  
pp. 215824401982885 ◽  
Author(s):  
Festus Victor Bekun ◽  
Seyi Saint Akadiri
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Southern Africa ◽  
Poverty Alleviation ◽  
Poverty Reduction ◽  
Agricultural Development ◽  
Value Added ◽  
Panel Causality ◽  
Long Run ◽  
Short Run

Agricultural advancement is considered a panacea for poverty reduction, particularly, in developing countries. This study empirically investigates the dynamic linkage between agricultural value added (AVA) and poverty reduction for a panel of nine countries in Southern Africa using a second-generation panel approach for the period 1990 to 2015. Empirical results show that agricultural development is necessary but not a sufficient policy to combat poverty as it is only viable in the short run. Thus, we suggest long-run economic programs and/or strategies that will complement agricultural development toward poverty alleviation to spur economic growth in the sampled region.

Determinants of Export Performance in Ethiopia

2020 ◽  
Author(s):  
Ezo Emako Kamma
Keyword(s):  
Economic Growth ◽  
Export Performance ◽  
Industrial Sector ◽  
Foreign Demand ◽  
Long Run ◽  
Export Supply ◽  
Negative Effect ◽  
Short Run ◽  
Real Value ◽  
Marketing Costs

Abstract Ethiopia has adopted different policy measures geared at promoting exports. As a result the real value of export has increased by more than 13 folds during 1980-2018 periods; however, its share in gross domestic product and import bills is being very small. Therefore, this article aimed to investigate the factors responsible for export performance over the period 1980-2018 by using the bound co-integration approach. In the long run, the regression analysis implies that real economic growth, inflation and the foreign demand are found to have a positive effect, whereas openness and the share of agriculture have a negative effect. Real economic growth, inflation and the foreign demand depressingly affect the export supply in the short run whereas openness affects positively but the share of agriculture was not found to be crucial. Thus, in order Ethiopia economy to improve its own export supply, focusing on industrial sector, ensuring and expanding vocational and technical education, trying to reduce marketing costs through the process by making transparent, and diversifying the destination are very crucial policy tools.

scholarly journals Land Inequality and Economic Growth: A Meta-Analysis

2018 ◽  
Vol 10 (12) ◽  
pp. 4655 ◽  
Author(s):  
Maria Cipollina ◽  
Nadia Cuffaro ◽  
Giovanna D’Agostino
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Panel Data ◽  
Negative Impact ◽  
Credit Constraints ◽  
Meta Analysis ◽  
Land Inequality ◽  
Long Run ◽  
Short Run ◽  
Development Levels

Increasing commercial pressure on land may lead to land concentration in developing countries, especially in the context of complex systems of property rights. In this article we review through meta-analysis (MA) the econometric findings of the literature estimating the nexus between land inequality and economic growth. In particular, our MA controls for various features of the studies and for the so-called “publication bias,” and shows that land-inequality negatively affects economic growth, especially at low development levels. Analysis based on panel data, which generally imply a relatively short run perspective, typically report a lower or positive correlation between land inequality and growth, suggesting that the negative impact of land inequality emerges in the long run, possibly through credit constraints and institutional mechanisms.

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