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A cross-regional analysis of military expenditure, state fragility and economic growth in Africa

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  • Charles Shaaba Saba

    (University of Johannesburg)

  • Nicholas Ngepah

    (University of Johannesburg)

Abstract

This study investigates the relationship between military expenditure, state fragility and economic growth at regional economic communities of African countries. With a balanced panel of 34 African countries spanning 1990–2015. The variables of interest for this study include military expenditure, state fragility and economic growth. To measure economic growth, real gross domestic product per capita serves as the proxy, while state fragility is measured by the state fragility index, and military expenditure by military expenditure as a percentage share of GDP. We utilise: panel causality and cointegration test; and the generalised method of moments (GMM) estimation techniques. The causality results suggest a feedback relationship among our variables of interest and this justified the use of GMM. Our analysis suggests that the effect of military expenditure on growth is negative at Africa level with significant regional economic level differences, and this effect is influenced in the presence of state fragility. This imply that there exist complementary effects between military expenditure and state fragility on growth. A cut in military expenditure and a consideration of other means of dealing with fragility issues as an alternative to joint regional militarised intervention of regional governments of African countries is recommended.

Suggested Citation

  • Charles Shaaba Saba & Nicholas Ngepah, 2019. "A cross-regional analysis of military expenditure, state fragility and economic growth in Africa," Quality & Quantity: International Journal of Methodology, Springer, vol. 53(6), pages 2885-2915, November.
  • Handle: RePEc:spr:qualqt:v:53:y:2019:i:6:d:10.1007_s11135-019-00905-6
    DOI: 10.1007/s11135-019-00905-6
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    Cited by:

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    4. Muhammad Athar Nadeem & Zhiying Liu & Haji Suleman Ali & Amna Younis & Muhammad Bilal & Yi Xu, 2020. "Innovation and Sustainable Development: Does Aid and Political Instability Impede Innovation?," SAGE Open, , vol. 10(4), pages 21582440209, November.
    5. Charles Shaaba Saba & Nicholas Ngepah, 2019. "Military expenditure and economic growth: evidence from a heterogeneous panel of African countries," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 32(1), pages 3586-3606, January.
    6. Ijirshar, Victor Ushahemba & Andohol, Jerome, 2022. "Investment-growth nexus in West Africa: An assessment of whether fragility matter," International Review of Economics & Finance, Elsevier, vol. 81(C), pages 1-17.
    7. Charles Shaaba Saba & Oladipo Olalekan David, 2023. "Identifying Convergence in Telecommunication Infrastructures and the Dynamics of Their Influencing Factors Across Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(2), pages 1413-1466, June.
    8. Charles Shaaba Saba & Nicholas Ngepah, 2020. "Empirical Analysis of Military Expenditure and Industrialisation Nexus: A Regional Approach for Africa," International Economic Journal, Taylor & Francis Journals, vol. 34(1), pages 58-84, January.
    9. Charles Shaaba Saba & Nicholas Ngepah, 2021. "Nexus between telecommunication infrastructures, defence and economic growth: a global evidence," Netnomics, Springer, vol. 22(2), pages 139-177, December.
    10. Saba Charles Shaaba & Ngepah Nicholas, 2020. "Military expenditure and security outcome convergence in African regional economic communities: evidence from the convergence club algorithm," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 26(1), pages 1-28, February.
    11. Saba, Charles Shaaba, 2023. "Nexus between CO2 emissions, renewable energy consumption, militarisation, and economic growth in South Africa: Evidence from using novel dynamic ARDL simulations," Renewable Energy, Elsevier, vol. 205(C), pages 349-365.
    12. Saba, Charles Shaaba, 2021. "Convergence and transition paths in transportation: Fresh insights from a club clustering algorithm," Transport Policy, Elsevier, vol. 112(C), pages 80-93.
    13. Charles Shaaba Saba & Nicholas Ngepah, 2022. "ICT Diffusion, Industrialisation and Economic Growth Nexus: an International Cross-country Analysis," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(3), pages 2030-2069, September.
    14. Saba Charles Shaaba, 2022. "Defence Spending and Economic Growth in South Africa: Evidence from Cointegration and Co-Feature Analysis," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 28(1), pages 51-100, February.
    15. Wen-Min Lu & Qian Long Kweh & Kang-Fu Chen, 2021. "How do peace dividends bring about human development and productivity?," Annals of Operations Research, Springer, vol. 306(1), pages 435-452, November.
    16. Duygu Yolcu Karadam & Nadir Öcal & Jülide Yildirim, 2023. "Distinct Asymmetric Effects of Military Spending on Economic Growth for Different Income Groups of Countries," Defence and Peace Economics, Taylor & Francis Journals, vol. 34(4), pages 477-494, May.
    17. Woosung Kim, 2022. "The Impact of Reducing Military Expenditures in South Korea Using a CGE Model," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 20(3), pages 577-600, September.
    18. Charles Shaaba Saba & Nicholas Ngepah, 2022. "Nexus between telecommunication infrastructures, defence and economic growth: a global evidence," Netnomics, Springer, vol. 22(2), pages 139-177, October.
    19. Dada James Temitope & Awoleye Emmanuel Olayemi & Arnaut Marina & Al-Faryan Mamdouh Abdulaziz Saleh, 2023. "Revisiting the Military Expenditure-Growth Nexus: Does Institutional Quality Moderate the Effect?," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 29(1), pages 19-42, February.

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    More about this item

    Keywords

    Military expenditure; State fragility; Economic growth; Panel data; African regional economic communities;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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