IDEAS home Printed from https://ideas.repec.org/a/bpj/pepspp/v30y2024i4p477-503n1001.html
   My bibliography  Save this article

Asymmetric and Threshold Effect of Military Expenditure on Economic Growth: Insight from an Emerging Market

Author

Listed:
  • Dada James Temitope

    (Department of Economics, Obafemi Awolowo University, Ile-Ife, Nigeria)

  • Sharimakin Akinwumi

    (Department of Economics, Adeyemi College of Education, Ondo, Ondo, Nigeria)

  • Al-Faryan Mamdouh Abdulaziz Saleh

    (Faculty of Business and Law, School of Accounting, Economics and Finance, University of Portsmouth, Portsmouth, Hampshire, UK)

  • Tabash Mosab I.

    (College of Business, Al Ain University, Al Ain, Abu Dhabi, United Arab Emirates)

  • Adeiza Adams

    (Malaysian Graduate School of Entrepreneurship and Business (MGSEB), Universiti Malaysia Kelantan, Bachok, Kelantan, Malaysia)

Abstract

This study aims to investigate the asymmetric effect of military expenditure on economic growth in Nigeria. Furthermore, it determines the threshold level of military expenditure that spurs or hinders economic growth in Nigeria. To achieve the study’s objectives, the nonlinear autoregressive distributed lag (NARDL) and dynamic threshold autoregressive (TAR) techniques are applied as estimation techniques to data from 1981 to 2020. The findings from the study show that (1) positive shocks in military expenditure negatively impact economic growth in the short run, while the effect turns positive in the long run. (2) Negative military expenditure shocks negatively influenced economic growth in Nigeria in both periods. (3) The result from the threshold regression found a threshold value of 0.579 for military expenditure. Based on these findings, policymakers must consider the inherent tendency of asymmetry and nonlinearity in military expenditure when formulating policies related to government spending.

Suggested Citation

  • Dada James Temitope & Sharimakin Akinwumi & Al-Faryan Mamdouh Abdulaziz Saleh & Tabash Mosab I. & Adeiza Adams, 2024. "Asymmetric and Threshold Effect of Military Expenditure on Economic Growth: Insight from an Emerging Market," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 30(4), pages 477-503.
    • Handle: RePEc:bpj:pepspp:v:30:y:2024:i:4:p:477-503:n:1001
    DOI: 10.1515/peps-2023-0067
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/peps-2023-0067
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.
    File URL: https://libkey.io/10.1515/peps-2023-0067?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    military expenditure; economic growth; asymmetric; threshold;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:pepspp:v:30:y:2024:i:4:p:477-503:n:1001. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.