| ID | 147497 |
| Title Proper | Defence Spending and Income Inequality in Taiwan |
| Language | ENG |
| Author | Wolde-Rufael, Yemane |
| Summary / Abstract (Note) | The rising trend in income inequality has recently attracted a renewed interest in the determinants of this growing trend across many countries. This article adds to the debate by investigating the impact of defence expenditure as a possible determinant of inequality in Taiwan, a country once was considered to be a poster child of an equitable growth, but now income inequality has become one of the Taiwan’s growing challenges. Applying the bounds test approach to cointegration and four long-run estimators for the period from 1976–2011, we found a long-run relationship between the various measures of inequality and defence expenditure where defence expenditure exerts a positive and a statistically significant impact on the worse income inequality in Taiwan. Further application of the lag-augmented causality test procedure also reveals a unidirectional causality running from defence expenditure to income inequality with defence expenditure causing income inequality to rise. |
| `In' analytical Note | Defence and Peace Economics Vol. 27, No.6; Dec 2016: p.871-884 |
| Journal Source | Defence and Peace Economics Vol: 27 No 6 |
| Key Words | Taiwan ; Defence Spending ; Granger Causality ; Income Inequality ; Bounds Tes |