| ID | 083228 |
| Title Proper | Does military expenditure determine Fiji's exploding debt levels |
| Language | ENG |
| Author | Narayan, Paresh Kumar ; Narayan, Seema |
| Publication | 2008. |
| Summary / Abstract (Note) | Fiji's total debt stands at 65% of GDP. Domestic debt constitutes 55% of GDP. The goal of this paper is to investigate whether military expenditure has contributed to Fiji's exploding debt levels over the period 1970 to 2005. Our empirical analysis, conducted within a cointegration and vector error-correction framework, suggests that, in the long-run, military expenditure has had a statistically significant positive impact on both external debt and domestic debt, while income has had a statistically significant positive impact on domestic debt and a statistically significant negative impact on external debt. We explain the reasons behind this finding and draw some policy implications. |
| `In' analytical Note | Defence and Peace Economics Vol. 19, No.1; Feb 2008: p77-87 |
| Journal Source | Defence and Peace Economics Vol. 19, No.1; Feb 2008: p77-87 |
| Key Words | Military Expenditure ; GDP ; Debt ; Cointegration ; Fiji |