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Defence, Debt and Democracy: The 3D in South Asia

Author

Listed:
  • Bilal Mehmood

    (Department of Economics, GC University, Lahore, Pakistan)

  • Syed Hassan Raza

    (Department of Economics, NCBAandE, Lahore, Pakistan.)

  • Rizwan Baqar

    (Department of Economics, University of The Punjab, Pakistan.)

Abstract

Purpose: South Asian countries are not only ranked as power countries but are also prone to inter and intra country contentions along with political instability. This paper empirically examines the role of defence expenditure and democracy in determining external debt for five South Asian countries. We scrutinized the long run relationship by using large time dimension data from 1972 to 2013 for the selected sample of Asian countries with appropriate variables. Methodology: Econometric precision is fetched by using pooled mean group (PMG) along with mean group (MG), dynamic ordinary least squares (DOLS), fully modified ordinary least squares (FMOLS) among others. Findings: The results confirm the presence of long run relationship between military expenditures and external debt, whereas, there exist a negative relationship between democracy and external debt. Recommendations: Policy recommendations are made on the basis of empirical results.

Suggested Citation

  • Bilal Mehmood & Syed Hassan Raza & Rizwan Baqar, 2015. "Defence, Debt and Democracy: The 3D in South Asia," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 3(7), pages 312-319, July.
    • Handle: RePEc:ijr:journl:v:3:y:2015:i:7:p:312-319
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    References listed on IDEAS

    as
    1. Bilal Mehmood & Syed Hassan Raza & Mahwish Rana & Huma Sohaib & Muhammad Azhar Khan, 2014. "Triangular Relationship between Energy Consumption, Price Index and National Income in Asian Countries: A Pooled Mean Group Approach in Presence of Structural Breaks," International Journal of Energy Economics and Policy, Econjournals, vol. 4(4), pages 610-620.
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    Cited by:

    1. Waseem Khadim & Saddam Ilyas & Bilal Mehmood, 2016. "Of Inflation and Growth Nexus in BRIMC Economies," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 4(1), pages 32-45, January.

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    More about this item

    Keywords

    Defence; Debt; Democracy;
    All these keywords.

    JEL classification:

    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • H6 - Public Economics - - National Budget, Deficit, and Debt

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