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Military Spending-Household Consumption Nexus: A Heterogeneous Panel Data Approach - La relazione tra spesa militare e consumi delle fam iglie: un approccio panel data

Author

Listed:
  • ANORUO, Emmanuel

    (Department of Accounting and Management Information Systems, Coppin State University)

  • AKPOM, Uchenna

    (Department of Accounting, Finance and Economics, Th e University of West Alabama)

Abstract

This paper explores the relationship between milita ry spending and household consumption for a panel of fifteen African countries. Specifically, the study seeks to ascertain the substitutability or complementarity effects of military spending on household consumption using the panel Granger causality tests. The results from the unit root and cointegration tests indicate that the military spending and household consumption series have one order of integration as well as cointegrated. The Granger causality test results re veal that there is evidence of long run bidirectional causality between military spending a nd household consumption for the entire panel. The results from the Panel Dynamic OLS indic ate that military spending and household consumption positively influence each other in the long run. Taken together, the results suggest that military spending and household consumption ar e complementary. - Questo studio analizza la relazione tra la spesa mi litare e i consumi delle famiglie su un campione di quindici paesi africani. In particolare lo scopo di questo lavoro è accertare gli effetti di sostituibilità o complementarietà della spesa mi litare con i consumi delle famiglie tramite l’utilizzo di test di causalità di Granger. I risul tati dei test di radice unitaria e di cointegrazion e indicano che le serie della spesa militare e dei co nsumi delle famiglie hanno un ordine di integrazione e uno di cointegrazione. I risultati d ei test di Granger rivelano causalità bidirezionale nel lungo periodo tra spesa militare e consumi delle famiglie per tutto il panel . I risultati del test dei minimi quadrati ordinari (Pa nel Dynamic OLS) indicano che la spesa militare e i consumi delle famiglie si influenzano reciprocamente in senso posito nel lungo periodo. Considerati nel loro complesso i risultati suggeriscono che la spesa militare e i consumi delle famiglie sono complementari.

Suggested Citation

  • ANORUO, Emmanuel & AKPOM, Uchenna, 2016. "Military Spending-Household Consumption Nexus: A Heterogeneous Panel Data Approach - La relazione tra spesa militare e consumi delle fam iglie: un approccio panel data," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 69(3), pages 175-192.
    • Handle: RePEc:ris:ecoint:0777
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Military Spending; Household Consumption; Causality; Cointegration;
    All these keywords.

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory

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