Dynamics of Military Expenditure and Income Inequality in Pakistan
Syed Raza (),
Muhammad Shahbaz () and
Sudharshan Reddy Paramati ()
Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, 2017, vol. 131, issue 3, 1035-1055
Abstract This study investigates the impact of military expenditures on income inequality in Pakistan using data over the period of 1972–2012. For this purpose, we applied the ARDL bounds testing cointegration approach which confirmed the presence of long-run equilibrium relationship between military expenditure and income inequality. Furthermore, empirical analysis indicates that military spending has a positive impact on income inequality. The analysis of Granger causality, Toda–Yamamoto Modified Wald test and variance decomposition approaches confirm the presence of unidirectional causality running from military expenditure to income inequality. The findings of our study suggest that higher military expenditure leads to higher income inequality in Pakistan. Therefore, we advise the policy makers to focus more on the policies which can increase the economic activities in the country and eventually reduce income inequality.
Keywords: Military expenditure; Income inequality; Economic growth; Pakistan (search for similar items in EconPapers)
JEL-codes: H56 D30 F43 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (7) Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s11205-016-1284-7 Abstract (text/html)
Access to the full text of the articles in this series is restricted.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:spr:soinre:v:131:y:2017:i:3:d:10.1007_s11205-016-1284-7
Ordering information: This journal article can be ordered from
Access Statistics for this article
Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement is currently edited by Filomena Maggino
More articles in Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement from Springer
Bibliographic data for series maintained by Sonal Shukla ().