Military Spending and Economic Growth: Evidence from Jordan
AbstractThe purpose of this research is to investigate the causal relation between military spending and economic growth in one of the MENA countries, Jordan using annual data over the period 1988-2007. The methodology used in this study follows Toda and Yamamoto (1995) procedure in order to test the Granger causality between economic growth and military spending. The empirical results reveal that military spending Granger causes economic growth in Jordan. Thus, these findings lend support to the hypothesis that military spending positively affect economic growth through increasing aggregate demand.
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Bibliographic InfoPaper provided by School of Business Administration, American University of Sharjah in its series Economics Working Papers with number 19-04/2014.
Length: 11 pages
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Military spending; Economic growth; Jordan; Causality;
Find related papers by JEL classification:
- C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models &bull Diffusion Processes
- H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
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