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The effect of military spending on economic growth in MENA: evidence from method of moments quantile regression

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  • Isiaka Akande Raifu

    (University of Ibadan)

  • Alarudeen Aminu

    (University of Ibadan)

Abstract

This study adopted a novel quantile regression via moments to explore the effects of military spending on the distribution of economic growth of 14 MENA countries over the period from 1981 to 2019. The method, apart from enabling us to investigate the effects of military spending on the distribution of economic growth at different quantiles, also helps to address issues of heterogeneity and endogeneity characterising the panel studies. Our results showed that irrespective of measures of military spending and economic growth, an upsurge in military spending leads to a positive effect on economic growth at different quantiles, suggesting that military spending is productive and growth-enhancing in the MENA countries.

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  • Isiaka Akande Raifu & Alarudeen Aminu, 2023. "The effect of military spending on economic growth in MENA: evidence from method of moments quantile regression," Future Business Journal, Springer, vol. 9(1), pages 1-21, December.
    • Handle: RePEc:spr:futbus:v:9:y:2023:i:1:d:10.1186_s43093-023-00181-9
    DOI: 10.1186/s43093-023-00181-9
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    More about this item

    Keywords

    Military spending; Economic growth; Quantile regression via moments;
    All these keywords.

    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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