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Military Expenditure and Economic Growth in South Asian Countries: Empirical Evidences

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  • Saba Ismail

    (Department of Economics, Jamia Millia Islamia (Central University), New Delhi - 110 025, India.)

Abstract

This paper is an attempt to examine the relationship between military expenditure and economic growth in South Asia region. Panel fixed effect model has been estimated using panel data from five South Asian Countries. The results indicate positive effect of military expenditure on economic growth but significantly less compared to alternative uses of scare resources as non-military expenditure. This study raises an important issue of huge opportunity cost of military expenditure and foregone opportunity of economic growth. The paper concludes that the boosting of economic growth through higher military expenditure is neither effective nor efficient way of achieving higher growth.

Suggested Citation

  • Saba Ismail, 2017. "Military Expenditure and Economic Growth in South Asian Countries: Empirical Evidences," International Journal of Economics and Financial Issues, Econjournals, vol. 7(3), pages 318-325.
    • Handle: RePEc:eco:journ1:2017-03-42
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    Cited by:

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    2. Abdul Rehman & Hengyun Ma & Rafael Alvarado & Fayyaz Ahmad, 2023. "The nexus of military, final consumption expenditures, total reserves, and economic development of Pakistan," Economic Change and Restructuring, Springer, vol. 56(3), pages 1753-1776, June.
    3. Liu Geng & Olivier Joseph Abban & Yao Hongxing & Charles Ofori & Joana Cobbinah & Sarah Akosua Ampong & Muhammad Akhtar, 2024. "Do military expenditures impede economic growth in 48 Islamic countries? A panel data analysis with novel approaches," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(7), pages 18725-18759, July.
    4. Osabuohien-Irabor Osarumwense & Drapkin Igor M., 2023. "Global Outward Foreign Direct Investment and Economic Growth Across Income Groups: The Mediating Effect of Home Country Institutions," SAGE Open, , vol. 13(2), pages 21582440231, April.
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    More about this item

    Keywords

    Military Expenditure; Economic Growth; Panel Data; South Asia;
    All these keywords.

    JEL classification:

    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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