Military Spending And Economic Growth In Sri Lanka: A Time Series Analysis
AbstractIn this paper, we employ a VAR analysis to examine the nexus between military spending and economic growth in Sri Lanka which, due to the civil war there, has witnessed a significant increase in military spending over the last three decades while also recording healthy economic growth. The study finds that, compared with non-military spending, military spending exerts only a minimal positive impact on real GDP. Over a 10-year period, a 1% increase in non-military spending increases GDP by 1.6%. In contrast, military spending only increases GDP by 0.05%, suggesting that the economic benefits for Sri Lanka from a sustained peace may be considerable.
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Bibliographic InfoArticle provided by Taylor and Francis Journals in its journal Defence and Peace Economics.
Volume (Year): 20 (2009)
Issue (Month): 6 ()
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Web page: http://taylorandfrancis.metapress.com/link.asp?target=journal&id=300224
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- Muhammad Shahbaz & Talat Afza & Muhammad Shahbaz Shabbir, 2013.
"Does Defence Spending Impede Economic Growth? Cointegration And Causality Analysis For Pakistan,"
Defence and Peace Economics,
Taylor and Francis Journals, vol. 24(2), pages 105-120, April.
- Shahbaz, Muhammad & Afza, Talat & Shabbir, Shahbaz Muhammad, 2011. "Does defence spending impede economic growth? cointegration and causality analysis for Pakistan," MPRA Paper 30887, University Library of Munich, Germany, revised 27 Mar 2011.
- Muhammad, Shahbaz & Nuno, Carlos Leitão & Ghazi, Salah Uddin, 2012. "Should Portuguese Economy Invest in Defense Spending? A Revisit," MPRA Paper 42289, University Library of Munich, Germany, revised 26 Oct 2012.
- Kumudini R. Ganegodage & Alicia N. Rambaldi, 2012. "Economic Consequences of War: Evidence from Sri Lanka," Discussion Papers Series 453, School of Economics, University of Queensland, Australia.
- Tiwari, Aviral & Shahbaz, Muhammad, 2011. "Does Defence Spending Stimulate Economic Growth in India?," MPRA Paper 30880, University Library of Munich, Germany, revised 18 Apr 2011.
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