Military spending, economic growth and endogeneity a panel analysis 1988-2010

This paper examines the impact of military expenditure on economic growth on a large balanced panel, using an exogenous growth model and dynamic panel data methods for 104 countries over the period 1988-2010. The prime objective of the paper is to consider the possibility of non-linearity, group heterogeneity and endogeneity within the sample. Having estimated and appraised a full sample, it is stratified based upon a range of potentially relevant factors; different levels of income, conflict experience, natural resource abundance, openness and aid. Following the stratification process, a set of instrumental variables are taken for military spending. Using 2SLS and a dynamic Generalized Method of Moments (GMM) method, the sample is regressed to identify for military expenditure.

Grantor dc:publisher.institution

School of Economics

Year dc:date.issued

2013

Author dc:creator

• Tian, Nan

Advisor dc:contributor.advisor

• Dunne, John Paul

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/11427/11178

OAI identifier oai:identifier

oai:open.uct.ac.za:11427/11178