| ID | 144791 |
| Title Proper | Military expenditure and income distribution in South Korea |
| Language | ENG |
| Author | Wolde-Rufael, Yemane |
| Summary / Abstract (Note) | This paper attempts to investigate the long-run and the causal relationship between military expenditure and income distribution in South Korea for the period 1965–2011. Applying the bounds test approach to cointegration, we found a long-run relationship between military expenditure and the Gini coefficient with military expenditure having a positive and a statistically significant impact on income inequality. A 1% rise in military expenditure increased the Gini coefficient by 0.38%. Application of the lag-augmented causality test also reveals a unidirectional causality running from military expenditure to income inequality. The evidence seems to suggest that devoting more resources to the military sector may further worsen income inequality in South Korea. |
| `In' analytical Note | Defence and Peace Economics Vol. 27, No.4; Aug 2016: p.571-581 |
| Journal Source | Defence and Peace Economics Vol: 27 No 4 |
| Key Words | South Korea ; Military Spending ; Granger Causality ; Variance Decomposition ; Income Inequality ; Bounds Test |