AN EMPIRICAL ANALYSIS OF EFFECTS OF MILITARY SPENDING ON ECONOMIC GROWTH IN NIGERIA: A BOUND TESTING APPROACH TO CO-INTEGRATION 1989-2013

Olumuyiwa Apanisile and Olalekan Okunlola

Journal of Public Administration, Finance and Law, 2014, vol. 6, issue 6, 117-130

Abstract: The study examines the effect of military expenditure on output in Nigeria both in the short-run and in the long-run period. In addition, it verified whether military expenditure is an economically non-contributive activity using ARDL bounds testing approach to co-integration. Results showed that military spending has negative and significant effect on output in the short-run but positive and significant effect in the long-run. Labour and capital have positive and significant effects both in the long-run and short-run. In addition, labour has the highest coefficient (3.0709) in the long-run. The study concludes that government should reduce its expenditure on defense and concentrate more on human capital development, since military spending contributes nothing to output in the short-run.

Keywords: Military spending; Human capital; ARDL; Economic Growth; Inflation (search for similar items in EconPapers)
JEL-codes: C22 E31 H5 I15 O4 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:aic:jopafl:y:2014:v:6:p:117-130

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