Vojna potrošnja i ekonomski rast u Pakistanu: Novi dokazi dobiveni pristupom kliznog prozora

Translated title of the contribution: Military spending and economic growth in Pakistan: New evidence from rolling window approach

Muhammad Shahbaz, Muhammad Shahbaz Shabbir

Research output: Contribution to journalArticlepeer-review

Abstract

Purpose: This paper re-investigates causality between military spending and economic growth by applying autoregressive distributed lag model or ARDL bounds testing approach to cointegration. Furthermore, rolling window approach (RWA) to cointegration is also applied to confirm the established long run relation between the variables. The VECM Granger causality is used to detect the direction of causality between military spending and economic growth. Our empirical exercise indicated long run relationship between military spending and economic growth as confirmed by rolling window approach. Moreover, negative unidirectional causality is found running from defense spending to economic growth. This paper opens up new sights for policy-making authorities to sustain economic growth by curtailing defense spending.

Translated title of the contributionMilitary spending and economic growth in Pakistan: New evidence from rolling window approach
Original languageUndefined
Pages (from-to)144-159
Number of pages16
JournalEkonomska Istrazivanja
Volume25
Issue number1
DOIs
StatePublished - 2012

Keywords

  • Causality
  • Cointegration
  • Defence spending
  • Growth

ASJC Scopus subject areas

  • Economics and Econometrics

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