Revisiting the Military Expenditure-Growth Nexus: Does Institutional Quality Moderate the Effect?-Reference-Cited by-同舟云学术

Revisiting the Military Expenditure-Growth Nexus: Does Institutional Quality Moderate the Effect?

Published:2023-02-01 Issue:1 Volume:29 Page:19-42
ISSN:1079-2457
Container-title:Peace Economics, Peace Science and Public Policy
language:en
Short-container-title:

Author:

Dada James Temitope¹^ORCID,Awoleye Emmanuel Olayemi²,Arnaut Marina³,Al-Faryan Mamdouh Abdulaziz Saleh⁴⁵^ORCID

Affiliation:

1. Economics , Obafemi Awolowo University , Ile-Ife , Nigeria

2. Economics , Hallmark University, Ijebu Itele , Ijebu , Ogun , Nigeria

3. University of Dubai , Dubai , United Arab Emirates

4. School of Accounting, Economics and Finance , University of Portsmouth, Faculty of Business and Law , Richmond Building, Portland Street , Portsmouth , Hampshire PO1 3DE , UK

5. Consultant in Economics and Finance , Riyadh , Saudi Arabia

Abstract

Abstract The purpose of this study is to examine the moderating role and threshold level of institutional quality in the nexus between military expenditure and economic growth for a panel of 31 African nations. The results reveal that military expenditure negatively influences growth, while institutional quality positively affects growth. The interactive term of institutional quality and military expenditure significantly positively influence economic growth. However, the threshold level of institutional quality for military expenditure to translate into economic growth in the region is found to be 4.61 on an ordinary scale of 0–10, although most countries operate below the threshold point of institutional quality. The study concludes that strong institutional quality serves as important absorptive capacity for military expenditure to drive economic growth in the region.

Publisher

Walter de Gruyter GmbH

Subject

Management, Monitoring, Policy and Law,Political Science and International Relations,Economics and Econometrics,Sociology and Political Science

Link

https://www.degruyter.com/document/doi/10.1515/peps-2022-0027/pdf

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