| ID | 098335 |
| Title Proper | Defence-growth nexus revisited |
| Other Title Information | evidence from the Israeli-Arab conflict |
| Language | ENG |
| Author | Abu-qarn, Aamer S |
| Publication | 2010. |
| Summary / Abstract (Note) | This paper revisits the defence-growth nexus for the rivals of the Israeli-Arab conflict over the last four decades. To this end, we utilize the Toda and Yamamoto (1995) causality test and the generalized variance decomposition. Contrary to the conventional wisdom and many earlier studies, we fail to detect any persistent adverse impact of military expenditures on economic growth. Our conclusions are kept intact even when we account for the possibility of endogenous structural breaks and during the post-1979 peace treaty period. Our findings imply insignificant peace dividends once the conflict is resolved and the military spending is cut to internationally acceptable standards. |
| `In' analytical Note | Defence and Peace Economics Vol. 21, No. 4; Aug 2010: p.291 - 300 |
| Journal Source | Defence and Peace Economics Vol. 21, No. 4; Aug 2010: p.291 - 300 |
| Key Words | Growth ; Middle East ; Israeli - Arab Conflict ; Causality ; Generalized Forecast Error Variance Decomposition |