Effects of corruption on military expenditures

Imtiaz Arif, Lubna Khan and Syed Raza

Journal of Financial Crime, 2019, vol. 26, issue 3, 774-785

Abstract: Purpose - This study aims to investigate the effect of corruption on military expenditures in three income level countries. An annual data series of 97 countries covering high-income, middle-income, and low-income regions from 1997 to 2015 is used. Design/methodology/approach - The cross-sectional dependency and integration property of the data series was checked before applying the generalized method of moments approach to test the model. Findings - The results of the system generalized method of moments approach suggest that corruption increases the military budget of high-income countries, whereas corruption reduces the military budget of the middle- and low-income countries. Originality/value - This paper offers some substantial implications for the policymakers of each income group to curb corruption and improve economic development.

Keywords: Corruption; Military expenditure; Urbanization; GDP per capita; Investment; Government use of goods and services (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jfcpps:jfc-09-2018-0092

DOI: 10.1108/JFC-09-2018-0092

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