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An Empirical Investigation of External Debt - Military Expenditure Nexus in Bangladesh

Author

Listed:
  • Khalid ZAMAN

    (Department of Management Sciences, COMSATS Institute of Information Technology, Abbottabad, Pakistan)

  • Qazi Shujaat MAHMOOD

    (Department of Management Sciences, COMSATS Institute of Information Technology, Abbottabad, Pakistan.)

  • Muhammad Mushtaq KHAN

    (Department of Management Sciences, COMSATS Institute of Information Technology, Abbottabad, Pakistan.)

  • Awais RASHID

    (Department of Management Sciences, COMSATS Institute of Information Technology, Abbottabad, Pakistan.)

  • Mehboob AHMAD

    (Department of Management Sciences, Bahria University, Islamabad, Pakistan)

Abstract

The objective of this paper is to empirically investigate a two-way statistical relationship between the real external debt and real military expenditure in the context of Bangladesh. A time series co-integration and Granger causality tests have been employed from 1980 - 2009 for analysis. The empirical results support the bi-directional causality between the external debt and economic growth, while unidirectional causality runs from military spending to external debt.

Suggested Citation

  • Khalid ZAMAN & Qazi Shujaat MAHMOOD & Muhammad Mushtaq KHAN & Awais RASHID & Mehboob AHMAD, 2012. "An Empirical Investigation of External Debt - Military Expenditure Nexus in Bangladesh," Economia. Seria Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 15(1), pages 173-188, June.
    • Handle: RePEc:rom:econmn:v:15:y:2012:i:1:p:173-188
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    References listed on IDEAS

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    More about this item

    Keywords

    Bangladesh; Cointegration; Granger causality; Real Arms import; Real External debt; Real Military expenditure.;
    All these keywords.

    JEL classification:

    • H00 - Public Economics - - General - - - General
    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables

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