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Defense, Education and Health Expenditures in Selected Asian Countries

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  • Hirnissa, M.T
  • Habibullah, M.S.
  • Baharom, A.H.

Abstract

This study explores the inter-relationship between military expenditure, education expenditure and health expenditure in eight selected Asian countries namely Malaysia, Indonesia, Singapore, Philippines, Bangladesh, Nepal, Sri Lanka and South Korea. Autoregressive Distributed Lag-Restricted Error Correction Model (ARDL-RECM) procedure was utilized in the analysis. The empirical results suggest that, except for the case of Malaysia and Sri Lanka, whereby no meaningful interrelationship was detected between these three variables, the results for the rest of the countries are mixed, with differing granger causality being detected among these variables. The mixed results obtained in this study is an indicator of differing policy being implemented and will result in varying implication. Generally the error correction term is significant. Implying there is long-run relationship between defense spending, education and health expenditure.

Suggested Citation

  • Hirnissa, M.T & Habibullah, M.S. & Baharom, A.H., 2008. "Defense, Education and Health Expenditures in Selected Asian Countries," MPRA Paper 13107, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:13107
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    File URL: https://mpra.ub.uni-muenchen.de/13107/1/MPRA_paper_13107.pdf
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    References listed on IDEAS

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    1. Kollias, Christos & Manolas, George & Paleologou, Suzanna-Maria, 2004. "Defence expenditure and economic growth in the European Union: A causality analysis," Journal of Policy Modeling, Elsevier, vol. 26(5), pages 553-569, July.
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    Cited by:

    1. Murthy, Vasudeva N.R. & Okunade, Albert A., 2016. "Determinants of U.S. health expenditure: Evidence from autoregressive distributed lag (ARDL) approach to cointegration," Economic Modelling, Elsevier, vol. 59(C), pages 67-73.

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    More about this item

    Keywords

    defense spending; health expenditure; education;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education

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