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Exploring The Long Run Effects And Relationship Of Military Expenditures And Economic Growth In The Scenario Of Pakistan

Author

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  • SYED FAZAL REHMAN

    (Economics department, Comsats University, Islamabad Campus)

Abstract

The principal attributes of this study were to examine the effect of military expenditures on economic expansion in the long run from the perspective of Pakistan. We took the yearly data from the year 1961 to 2018 and used A R D L estimation technique for empirical results. Through our results, we can confirm the existence of a connection between military spending and economic expansion of Pakistan in the long run. Additionally, over the long term, a positive outcome of military expenditures is observed upon the financial development of Pakistan. Hostile India and Kashmir issue are the principal reason behind a large-scale military expenditure of Pakistan. Solving this dispute and improving bilateral relations can help to reduce the extensive military budget and to attain efficient resource allocation for both countries.

Suggested Citation

  • Syed Fazal Rehman, 2020. "Exploring The Long Run Effects And Relationship Of Military Expenditures And Economic Growth In The Scenario Of Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 9(3), pages 106-112, September.
    • Handle: RePEc:rfh:bbejor:v:9:y:2020:i:3:p:106-112
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    References listed on IDEAS

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    More about this item

    Keywords

    Economic Growth; Defense Expenditure; National Security; Pakistan; ARDL;
    All these keywords.

    JEL classification:

    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory

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