| ID | 116234 |
| Title Proper | Debt Burden, military spending and growth In sub-Saharan Africa |
| Other Title Information | a dynamic panel data analysis |
| Language | ENG |
| Author | Ahmed, Abdullahi D |
| Publication | 2012. |
| Summary / Abstract (Note) | This article empirically explores the relationship between military expenditure, external debts and economic performance in the economies of sub-Saharan Africa using a sample of 25 countries from 1988-2007. In investigating the defence-external debt nexus, we employ three advanced panel techniques of fully modified OLS (FMOLS), Dynamic OLS (DOLS) and dynamic fixed effect (DFE) to estimate our model. We observe that military expenditure has a positive and significant impact on external debt in African countries. Real GDP affects the total debt stock of African countries with a negative relationship. Our empirical results based on long-run elasticities show that a 1% rise in national output leads to a decline in external debt by 1.52%, on average. Policy-wise, the study suggests that African countries need to strengthen areas of fiscal responsibility and pursue models that encourage rational spending, particularly reductions in military expenditure. |
| `In' analytical Note | Defence and Peace Economics Vol. 23, No.5; Oct 2012: p.485-506 |
| Journal Source | Defence and Peace Economics Vol. 23, No.5; Oct 2012: p.485-506 |
| Key Words | Debt Burden ; Military Expenditure ; Panel Cointegration ; SSA Countries |