ISSN: 2222-6990
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The present research explores dynamics of expenses on military and economic growth in four major Arab spring countries by using data from a balanced panel in a period from 2000 to 2014. Results of Kao cointegration report on the existence of long-run equilibrium in the relationship between economic growth and spending on military in all the countries. The FMOLS reports revealed a significant positive effect of military expenditure on economic growth of all four north Arab African countries (Libya, Egypt, Tunisia, Yemen and Iraq). For long-term Granger causality, this study adopted the panel vector error correction mechanism (P-VECM). Results indicated that in the long-term, not all countries have had Granger causality running from economic growth to military expenditure or vice-versa. The present research concludes that spending in the military division in the respective countries is in long-term not essential for the economic growth. While growth of GDP resulted in military expenditure in the short run, military expenditure does not show any short-term effect on the growth of GDP.
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In-Text Citation: (Almajdob & Marikan, 2021)
To Cite this Article: Almajdob, M. S., & Marikan, D. A. A. (2021). The Impact of Military Spending on The Economic Growth of Arab Spring Countries. International Journal of Academic Research in Business and Social Sciences, 11(3), 1436-1451.
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