Empirically testing Keynesian defense burden hypothesis, nonlinear hypothesis, and spillover hypothesis: Evidence from Asian countries
The objective of the study is to evaluate different alternative and plausible hypothesis, i.e., Keynesian defense burden hypothesis, nonlinear hypothesis, and spillover hypothesis by controlling governance indicators in a panel of 5 Asian selected countries during a period of 2000 to 2016. The study...
| Main Authors: | , , , , , |
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| Format: | Article |
| Language: | English |
| Published: |
General Association of Economists from Romania
2019-03-01
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| Series: | Theoretical and Applied Economics |
| Subjects: | |
| Online Access: |
http://store.ectap.ro/articole/1382.pdf
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| _version_ | 1819020087272669184 |
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| author | Qurat Ul AIN Syed Imran RAIS Syed Tahir Hussain SHAH Khalid ZAMAN Shakira EJAZ Abdul MANSOOR |
| author_facet | Qurat Ul AIN Syed Imran RAIS Syed Tahir Hussain SHAH Khalid ZAMAN Shakira EJAZ Abdul MANSOOR |
| author_sort | Qurat Ul AIN |
| collection | DOAJ |
| description | The objective of the study is to evaluate different alternative and plausible hypothesis, i.e.,
Keynesian defense burden hypothesis, nonlinear hypothesis, and spillover hypothesis by controlling
governance indicators in a panel of 5 Asian selected countries during a period of 2000 to 2016. The
study employed panel Fully Modified OLS (FMOLS) and Dumitrescu-Hurlin panel causality
estimates for robust inferences. The results confirmed the defense burden hypothesis where high
military expenditures decrease country’s economic growth. The real interest rate, trade openness,
and government education expenditures substantially decreases country’s per capita income due to
market imperfection, arms import, and low spending on education. The political instability decreases
economic growth while voice and accountability and regulatory control largely support country’s
economic growth. The causality estimates confirmed the feedback relationship between i) per capita
income and exports ii) trade openness and military expenditures, and iii) real interest rate and
exports, while growth led military expenditures and arms conflict, military led exports and political
instability, and trade led regulatory control established in causality framework. |
| first_indexed | 2024-12-21T03:45:38Z |
| format | Article |
| id | doaj.art-d3c238b49eec4c1189d374e1899afe5d |
| institution | Directory Open Access Journal |
| issn | 1841-8678 1844-0029 |
| language | English |
| last_indexed | 2024-12-21T03:45:38Z |
| publishDate | 2019-03-01 |
| publisher | General Association of Economists from Romania |
| record_format | Article |
| series | Theoretical and Applied Economics |
| spelling | doaj.art-d3c238b49eec4c1189d374e1899afe5d2022-12-21T19:17:06ZengGeneral Association of Economists from RomaniaTheoretical and Applied Economics1841-86781844-00292019-03-01XXVI116918218418678Empirically testing Keynesian defense burden hypothesis, nonlinear hypothesis, and spillover hypothesis: Evidence from Asian countriesQurat Ul AIN0Syed Imran RAIS1Syed Tahir Hussain SHAH2Khalid ZAMAN3Shakira EJAZ4Abdul MANSOOR5 University of Wah, Wah Cantt, Pakistan University of Wah, Wah Cantt, Pakistan University of Wah, Wah Cantt, Pakistan University of Wah, Wah Cantt, Pakistan University of Wah, Wah Cantt, Pakistan University of Wah, Wah Cantt, Pakistan The objective of the study is to evaluate different alternative and plausible hypothesis, i.e., Keynesian defense burden hypothesis, nonlinear hypothesis, and spillover hypothesis by controlling governance indicators in a panel of 5 Asian selected countries during a period of 2000 to 2016. The study employed panel Fully Modified OLS (FMOLS) and Dumitrescu-Hurlin panel causality estimates for robust inferences. The results confirmed the defense burden hypothesis where high military expenditures decrease country’s economic growth. The real interest rate, trade openness, and government education expenditures substantially decreases country’s per capita income due to market imperfection, arms import, and low spending on education. The political instability decreases economic growth while voice and accountability and regulatory control largely support country’s economic growth. The causality estimates confirmed the feedback relationship between i) per capita income and exports ii) trade openness and military expenditures, and iii) real interest rate and exports, while growth led military expenditures and arms conflict, military led exports and political instability, and trade led regulatory control established in causality framework. http://store.ectap.ro/articole/1382.pdf military expenditureseconomic growthpolitical instabilityregulatory controlvoice and accountabilityFMOLSAsian countries |
| spellingShingle | Qurat Ul AIN Syed Imran RAIS Syed Tahir Hussain SHAH Khalid ZAMAN Shakira EJAZ Abdul MANSOOR Empirically testing Keynesian defense burden hypothesis, nonlinear hypothesis, and spillover hypothesis: Evidence from Asian countries Theoretical and Applied Economics military expenditures economic growth political instability regulatory control voice and accountability FMOLS Asian countries |
| title | Empirically testing Keynesian defense burden hypothesis, nonlinear hypothesis, and spillover hypothesis: Evidence from Asian countries |
| title_full | Empirically testing Keynesian defense burden hypothesis, nonlinear hypothesis, and spillover hypothesis: Evidence from Asian countries |
| title_fullStr | Empirically testing Keynesian defense burden hypothesis, nonlinear hypothesis, and spillover hypothesis: Evidence from Asian countries |
| title_full_unstemmed | Empirically testing Keynesian defense burden hypothesis, nonlinear hypothesis, and spillover hypothesis: Evidence from Asian countries |
| title_short | Empirically testing Keynesian defense burden hypothesis, nonlinear hypothesis, and spillover hypothesis: Evidence from Asian countries |
| title_sort | empirically testing keynesian defense burden hypothesis nonlinear hypothesis and spillover hypothesis evidence from asian countries |
| topic | military expenditures economic growth political instability regulatory control voice and accountability FMOLS Asian countries |
| url |
http://store.ectap.ro/articole/1382.pdf
|
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