EconPapers    
Economics at your fingertips  
 

Military expenditure, economic growth and structural instability: a case study of South Africa

Goodness C. Aye, Mehmet Balcilar, John Dunne, Rangan Gupta and Renee van Eyden ()

Defence and Peace Economics, 2014, vol. 25, issue 6, 619-633

Abstract: This paper contributes to the growing literature on the milex-growth nexus, by providing a case study of South Africa and considering the possibility of structural breaks by applying newly developed econometric methods. Using full sample bootstrap Granger non-causality tests, no Granger causal link is found between military expenditure and GDP for 1951-2010, but parameter instability tests show the estimated VARs to be unstable. Using a bootstrap rolling window estimation procedure, however, finds evidence of bidirectional Granger causality in various subsamples. This implies standard Granger non-causality tests, which neither account for structural breaks nor time variation may be invalid.

Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

Downloads: (external link)
http://hdl.handle.net/10.1080/10242694.2014.886432 (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Military Expenditure, Economic Growth and Structural Instability: A Case Study of South Africa (2013)
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:taf:defpea:v:25:y:2014:i:6:p:619-633

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/GDPE20

DOI: 10.1080/10242694.2014.886432

Access Statistics for this article

Defence and Peace Economics is currently edited by Professor Keith Hartley

More articles in Defence and Peace Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().

 
Page updated 2024-07-04
Handle: RePEc:taf:defpea:v:25:y:2014:i:6:p:619-633