The effect of military expenditure on stock market development: panel evidence from system GMM estimates

Sakiru Solarin and Pritish Sahu ()

Defence and Peace Economics, 2015, vol. 26, issue 3, 271-287

Abstract: This paper examines the impact of military expenditure on stock market development in 36 countries over the period 1989-2010. Within a panel framework, the system GMM estimates is utilised to test the relationship with an array of control variables. We augment the traditional measure of military expenditure-military burden, with a newly constructed comprehensive index - Global Militarisation Index. Overall, the results show that military spending has a negative and significant effect on stock market performance in the selected countries.

Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://hdl.handle.net/10.1080/10242694.2014.898384 (text/html)
Access to full text is restricted to subscribers.

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:taf:defpea:v:26:y:2015:i:3:p:271-287

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

DOI: 10.1080/10242694.2014.898384

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 ().