Hirnissa, M.T and Habibullah, M.S. and Baharom, A.H. (2008): Defense and Inequality: Evidence from Selected ASIAN Countries.
Download (400Kb) | Preview
This paper examines the causality between military expenditure and income inequality in selected Asian countries namely Malaysia, Indonesia, Singapore, Philippines, India and South Korea for the period 1970-2005. Autoregressive Distributed Lag (ARDL) bounds testing procedure is employed to (1) analyze the impact of military expenditure on income inequality and (2) the impact of income inequality on military expenditure as well. Interestingly our results indicate one way causality running from military expenditure to income inequality only for the case of Malaysia and bidirectional causality for the case of Singapore. As for the remaining countries, no meaningful relationship could be detected and it can be seen as sign of good governance in these countries.
|Item Type:||MPRA Paper|
|Original Title:||Defense and Inequality: Evidence from Selected ASIAN Countries|
|Keywords:||defense spending; ARDL; Income Inequality|
|Subjects:||E - Macroeconomics and Monetary Economics > E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment > E24 - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital
E - Macroeconomics and Monetary Economics > E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment > E20 - General
|Depositing User:||Baharom Abdul Hamid|
|Date Deposited:||04. Dec 2008 04:01|
|Last Modified:||12. Feb 2013 12:56|
References Al-Yousif,, Y.K. (2002) Defense spending and economic growth: Some empirical evidence from the Arab Gulf region, Defence and Peace Economics, 13(3), 187-197
Ali, H.E. (2007) Military expenditure and inequality empirical evidence from global data, Defense and Peace. 18(6) 519-535.
Auvinen, J. and Nafziger, E.W. (1999). The sources of humanitarian emergencies. Journal of Conflict Resolution 43(3), 267-290
Auvinen, J. and Nafziger, E.W. (2002). Economic development, inequality, war, and state violence. World Development 30(2) 153-163
Banerjee, A., Dolado, J. and Mestre, R. (1998) Error-correction mechanism tests for cointegration in a single equation framework. Journal of Time Series Analysis 19, 267-283
Boswell, T. and Dixon, W.J. (1990) Dependency and rebellion: A cross-national analysis. American Sociological Review 55(4), 540-559
Caputo, D.A. (1975) New perspectives on the public policy implications of defense and welfare expenditures in four modern democracies: 1950-1970. Policy Sciences, 6, 423-446
Hassan, M.K, Waheeduzzaman, M. and Rahman, A.(2003) Defense expenditure and economic growth in the SAARC countries. The Journal of Social, Political and Economic Studies 28(3), 275-282
Jayadev, A. and Bowles, S (2006) guard Labor. Journal of Development Economics.,79 328– 348
Jorgensen, A.K. (2005) Unpacking international power and the ecological footprints of nations: A quantitative cross-national study. Sociological Perspectives 48(3), 383-402
Narayan, P.K. and Narayan, S. (2005) Estimating income and price elasticities of imports for Fiji in a cointegration framework. Economic Modelling 22, 423-438.
Pesaran, M.H., Shin, Y. and Smith, R.J. (2001) Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics 16, 289-326.
Henderson, D.R., McNab, R.M. and Rozsas, T. (2008) Did inequality increase in transition: An analysis of the transition countries of Eastern Europe and Central Asia, Eastern European Economics, 46 (2), 28-49
Kollias, C., Naxakis, C. and Zarangas, L. (2004a) Defence spending and growth in Cyprus: a causal analysis, Defence and Peace Economics, 15(3), 299-307.
Kollias, C., Manolas, G. and Paleologou, S. Z. (2004b) Defence expenditure and economic growth in the European Union: a causality analysis, Journal of Policy Modeling, 26, 553-569.
Pesaran, M.H., Shin, Y. and Smith, R.J. (2001) Bounds testing approaches to the analysis of level relationships, Journal of Applied Econometrics, 16, 289 – 326.
Shieh, J.Y, Lai, C.C and Chang, W.Y (2002) Endogenous growth and defense expenditures: A new explanation of the Benoit hypothesis, Defence and Peace Economics, 13(3) 179-186
SIPRI. SIPRI Yearbook 1975, 1977, 1985, 1990, 1999 and 2006. Oxford: Stockholm,International Peace research Institute, Oxford University Press.
Stock, J.H. and Watson, M. (1993) A simple estimator of cointegration vestors in higher order integrated systems, Econometrica, 61: 783-820
Stockholm International Peace Research Institute (SIPRI) database. Yildirim, J., Sezgin, S. and Ocal, N. (2005) Military expenditure and economic growth in Middle Eastern countries: a dynamic panel data analysis, Defence and Peace Economics, 16(4), 283-295.
Yildirim, J. and Ocal, N. (2006) Arms race and economic growth: the case of India and Pakistan. Defence and Peace Economics, 17, 37-45.