Military Expenditure-Economic Growth Dynamics: Fresh Insights from Sub-Saharan Africa

The study assesses Sub-Saharan Africa's economic growth-military spending nexus with a special bias towards impact and causality. The study focuses on 38 sub-Saharan African economies in the 1990-2021 era. The empirical evidence of the study is based cross-sectional dependence and homogeneity t...

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Bibliographic Details
Published in:Journal of economic cooperation & development 2024-01, Vol.45 (1), p.1-29
Main Authors: Oba, Efayena Obukohwo, Enoh, Olele Hilda, Ngozi, Buzugbe Patricia
Format: Article
Language:English
Subjects:
Bidirectionality
Causality
Defense spending
Developing countries
Economic growth
Expenditures
GDP
Gross Domestic Product
LDCs
R&D
Research & development
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Summary:The study assesses Sub-Saharan Africa's economic growth-military spending nexus with a special bias towards impact and causality. The study focuses on 38 sub-Saharan African economies in the 1990-2021 era. The empirical evidence of the study is based cross-sectional dependence and homogeneity tests, nonlinear estimation and granger non-causality techniques. The study established that military expenditure adversely impacts growth in the sub-region, and that a bidirectional causal relationship exists in the military expenditure-economic growth relationship. The study complements the relatively scanty and extant literature on the impact and causality permeating the dynamics in military expenditure and its influence on economic performance. Policy implications and mix from the study has far-reaching application in highly security-vulnerable regions in the world.
ISSN:1308-7800