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Military Expenses: A Brake on Economic Growth in Chad

Author

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  • Njamenkengdo, Arsene Aurelien
  • Kouladoum, Jean-Claude

Abstract

The objective of this study is to assess the contribution of military expenditure on economic growth in Chad. The methodology used refers to VAR modeling over the period 1985-2015. Results show that military expenditure has a negative and significant effect on economic growth in Chad. In terms of recommendations, Chad must significantly reduce its defense budget. The country must also diversify its economy fully based on oil revenues.

Suggested Citation

  • Njamenkengdo, Arsene Aurelien & Kouladoum, Jean-Claude, 2018. "Military Expenses: A Brake on Economic Growth in Chad," International Journal of Development and Conflict, Gokhale Institute of Politics and Economics, vol. 8(1), pages 14-26.
  • Handle: RePEc:gok:ijdcv1:v:8:y:2018:i:1:p:14-26
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    References listed on IDEAS

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    1. Philippe Hugon, 2005. "La scolarisation et l'éducation : facteurs de croissance ou catalyseurs du développement ?," Mondes en développement, De Boeck Université, vol. 132(4), pages 13-28.
    2. Barro, Robert J, 1990. "Government Spending in a Simple Model of Endogenous Growth," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 103-126, October.
    3. Feldstein, Martin, 1982. "Government deficits and aggregate demand," Journal of Monetary Economics, Elsevier, vol. 9(1), pages 1-20.
    4. Jean-Claude Berthélemy & Robert S. McNamara & Somnath Sen, 1994. "Les dividendes du désarmement : Défis pour la politique de développement," Cahiers de politique économique du Centre de Développement de l'OCDE 8, OECD Publishing.
    5. Jean-Baptiste Gossé & Cyriac Guillaumin, 2011. "Christopher A. Sims et la représentation VAR," CEPN Working Papers hal-00642920, HAL.
    6. J. Paul Dunne & Ron Smith & Dirk Willenbockel, 2005. "Models Of Military Expenditure And Growth: A Critical Review," Defence and Peace Economics, Taylor & Francis Journals, vol. 16(6), pages 449-461.
    7. Suna Korkmaz, 2015. "The Effect of Military Spending on Economic Growth and Unemployment in Mediterranean Countries," International Journal of Economics and Financial Issues, Econjournals, vol. 5(1), pages 273-280.
    8. Kollias, Christos & Manolas, George & Paleologou, Suzanna-Maria, 2004. "Defence expenditure and economic growth in the European Union: A causality analysis," Journal of Policy Modeling, Elsevier, vol. 26(5), pages 553-569, July.
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    More about this item

    Keywords

    Military expenses; economic growth;

    JEL classification:

    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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