Defense spending - economic growth nexus in selected OIC countries: a long-run causality analysis
This paper investigates the long run Granger causality between defense spending and economic growth for 20 selected Organization of Islamic Countries (OIC) by employing the Error-Correction Model (ECM) framework using annual data for the period 1960 to 2005. defense spending (milex) is measured usin...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Penerbit Universiti Malaysia Terengganu
2013
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| Online Access: | http://psasir.upm.edu.my/id/eprint/30843/1/Defense%20spending.pdf |
| _version_ | 1825947787524571136 |
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| author | Habibullah, Muzafar Shah Mohd Tahir, Hirnissa Abdul Hamid, Baharom |
| author_facet | Habibullah, Muzafar Shah Mohd Tahir, Hirnissa Abdul Hamid, Baharom |
| author_sort | Habibullah, Muzafar Shah |
| collection | UPM |
| description | This paper investigates the long run Granger causality between defense spending and economic growth for 20 selected Organization of Islamic Countries (OIC) by employing the Error-Correction Model (ECM) framework using annual data for the period 1960 to 2005. defense spending (milex) is measured using the ratio of defense spending to gross domestic product (GDP); while economic growth (rgdpc) is proxy by the real GDP per capita. The results of our study indicated that one way long run Granger causality was found running from economic growth to defense spending for Burkina Faso, Indonesia, Kuwait, Saudi Arabia, Sudan, Togo and Turkey. On the other hand, one way long run Granger causality was found running from defense spending to economic growth was found for Iran, Mauritania and Nigeria. However for the rest of the OIC countries, the results suggested no relationship between defense spending and economic growth. |
| first_indexed | 2024-03-06T08:18:47Z |
| format | Article |
| id | upm.eprints-30843 |
| institution | Universiti Putra Malaysia |
| language | English |
| last_indexed | 2024-03-06T08:18:47Z |
| publishDate | 2013 |
| publisher | Penerbit Universiti Malaysia Terengganu |
| record_format | dspace |
| spelling | upm.eprints-308432016-10-07T04:18:53Z http://psasir.upm.edu.my/id/eprint/30843/ Defense spending - economic growth nexus in selected OIC countries: a long-run causality analysis Habibullah, Muzafar Shah Mohd Tahir, Hirnissa Abdul Hamid, Baharom This paper investigates the long run Granger causality between defense spending and economic growth for 20 selected Organization of Islamic Countries (OIC) by employing the Error-Correction Model (ECM) framework using annual data for the period 1960 to 2005. defense spending (milex) is measured using the ratio of defense spending to gross domestic product (GDP); while economic growth (rgdpc) is proxy by the real GDP per capita. The results of our study indicated that one way long run Granger causality was found running from economic growth to defense spending for Burkina Faso, Indonesia, Kuwait, Saudi Arabia, Sudan, Togo and Turkey. On the other hand, one way long run Granger causality was found running from defense spending to economic growth was found for Iran, Mauritania and Nigeria. However for the rest of the OIC countries, the results suggested no relationship between defense spending and economic growth. Penerbit Universiti Malaysia Terengganu 2013 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/30843/1/Defense%20spending.pdf Habibullah, Muzafar Shah and Mohd Tahir, Hirnissa and Abdul Hamid, Baharom (2013) Defense spending - economic growth nexus in selected OIC countries: a long-run causality analysis. Journal of Business and Social Development, 1 (2). pp. 110-118. ISSN 2289-2915 |
| spellingShingle | Habibullah, Muzafar Shah Mohd Tahir, Hirnissa Abdul Hamid, Baharom Defense spending - economic growth nexus in selected OIC countries: a long-run causality analysis |
| title | Defense spending - economic growth nexus in selected OIC countries: a long-run causality analysis |
| title_full | Defense spending - economic growth nexus in selected OIC countries: a long-run causality analysis |
| title_fullStr | Defense spending - economic growth nexus in selected OIC countries: a long-run causality analysis |
| title_full_unstemmed | Defense spending - economic growth nexus in selected OIC countries: a long-run causality analysis |
| title_short | Defense spending - economic growth nexus in selected OIC countries: a long-run causality analysis |
| title_sort | defense spending economic growth nexus in selected oic countries a long run causality analysis |
| url | http://psasir.upm.edu.my/id/eprint/30843/1/Defense%20spending.pdf |
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