| ID | 134028 |
| Title Proper | Military expenditure, economic growth and structural instability |
| Other Title Information | a case study of South Africa |
| Language | ENG |
| Author | Aye, Goodness C ; Balcilar, Mehmet ; Dunne, John P ; Gupta, Rangan, Eyden, Reneé van |
| Publication | 2014. |
| Summary / Abstract (Note) | This paper contributes to the growing literature on the milex-growth nexus, by providing a case study of South Africa and considering the possibility of structural breaks by applying newly developed econometric methods. Using full sample bootstrap Granger non-causality tests, no Granger causal link is found between military expenditure and GDP for 1951-2010, but parameter instability tests show the estimated VARs to be unstable. Using a bootstrap rolling window estimation procedure, however, finds evidence of bidirectional Granger causality in various subsamples. This implies standard Granger non-causality tests, which neither account for structural breaks nor time variation may be invalid. |
| `In' analytical Note | Defence and Peace Economics Vol.25, No.6; Dec.2014: p.619-633 |
| Journal Source | Defence and Peace Economics Vol.25, No.6; Dec.2014: p.619-633 |
| Key Words | Military Spending ; Economic Growth ; Bootstrap ; Time Varying Causality ; C32 ; H56 ; O40 ; Structural Instability ; South Africa ; Defence Economcy |