Examining the Military Spending Economic Growth Nexus in the Presence of Informality: Evidence from the Balkan Peninsula

Dimitraki Ourania (), Emmanouilidis Kyriakos () and Asllani Alban ()
Additional contact information
Dimitraki Ourania: Graduate School of Business, Bedfordshire University, University Square, Luton, LU1 3JU, UK
Emmanouilidis Kyriakos: Business Administration and Economics Department, City College, University of York Europe Campus, Thessaloniki, Greece
Asllani Alban: Royal Docks School of Business and Law, Business Entrepreneurship and Finance Department, University of East London, University Square Stratford, London, 1 Salway Road, E15 1NF, UK

Peace Economics, Peace Science, and Public Policy, 2024, vol. 30, issue 4, 505-523

Abstract: This paper examines the military expenditure (milex) economic growth nexus, in selected Balkan and peripheral countries from 1990 to 2022, considering the presence of informality within an institutional framework. Specifically, we employ Principal Components Analysis (PCA) to formulate an index of informality and use the Dynamic Ordinary Least Squares (DOLS) and Fully-Modified Ordinary Least Squares (FMOLS) methods to identify the long-run equilibria. To provide a more comprehensive insight, the study also incorporates two types of causality tests – Dumitrescu-Hurlin and Juodis et al. – to determine the direction of the relationships. Our findings indicate that in the long-run milex can be detrimental to economic growth whilst informality boosts it.

Keywords: economic growth; military spending; informality; Balkan peninsula (search for similar items in EconPapers)
JEL-codes: C23 E26 H56 O17 O40 (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1515/peps-2024-0029 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bpj:pepspp:v:30:y:2024:i:4:p:505-523:n:1004

Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/peps/html

DOI: 10.1515/peps-2024-0029

Access Statistics for this article

Peace Economics, Peace Science, and Public Policy is currently edited by Raul Caruso

More articles in Peace Economics, Peace Science, and Public Policy from De Gruyter
Bibliographic data for series maintained by Peter Golla ().