The Interactional Impact of Defense Expenditure and Arms Importation on Economic Growth in Nigeria: An Autoregressive Approach

Muhammed Umar Aminu, Muhammed Umar Aminu and Abu Sufian Abu Bakar
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Muhammed Umar Aminu: Nigerian Army School of Education, Ilorin, Nigeria
Muhammed Umar Aminu: School of Economics, Finance and Banking, University Utara Malaysia, Kedah, Malaysia
Abu Sufian Abu Bakar: School of Economics, Finance and Banking, University Utara Malaysia, Kedah, Malaysia

International Journal of Economics and Financial Issues, 2016, vol. 6, issue 2, 538-543

Abstract: Little is done on the empirical analyses of the impact of defense expenditure on arms and economic growth. The few conducted concentrated on developed countries, which are exporters of arms. This study examines the short-run and long-run impact of arms importation on the economic growth in Nigeria, using autoregressive distributed lag model. Literature on defense expenditure and economic growth are often conflicting and inconclusive. These outcomes are due to the non-linear growth effects of defense and incorrect model specifications. The crucial growth effects of defense expenditure can be traced by properly controlling the interaction term. This paper examines the defense-arms interaction on Nigeria in the context of Aizeiman and Glick (2006) models. The result reveals that defense-arms interaction in Nigeria exerts negatively on the economic growth. It therefore recommends that defense R and D as well Defense Industrial Cooperation of Nigeria should be properly financed and managed for efficiency and self-reliability

Keywords: Defense Expenditure; Arms Importation; Economic Growth (search for similar items in EconPapers)
JEL-codes: H5 H56 H57 O36 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (2)

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