2016, Volume 69 - Issue 3
RSS feed citation: at CitEc
Publication date: 01 August 2016
MILITARY SPENDING-HOUSEHOLD CONSUMPTION NEXUS: A HETEROGENEOUS PANEL DATA APPROACHRead the article
LIBERALIZATION OF TRADE WITH THE EFTA COUNTRIES: SOME EVIDENCE FROM BOSNIA AND HERZEGOVINARead the article
DETERMINANTS OF WESTERN BALKAN EMIGRATION FLOWS: AN EMPIRICAL ANALYSISRead the article
Emmanuel ANORUO, Department of Accounting and Management Information Systems, Coppin State University, Baltimore, Mariland USA
Uchenna AKPOM, Department of Accounting, Finance and Economics, The University of West Alabama
This paper explores the relationship between military spending and household consumption for a panel of fifteen African countries. Specifically, the study seeks to ascertain the substitutability or complementarity effects of military spending on household consumption using the panel Granger causality tests. The results from the unit root and cointegration tests indicate that the military spending and household consumption series have one order of integration as well as cointegrated. The Granger causality test results reveal that there is evidence of long run bidirectional causality between military spending and household consumption for the entire panel. The results from the Panel Dynamic OLS indicate that military spending and household consumption positively influence each other in the long run. Taken together, the results suggest that military spending and household consumption are complementary.
Military Spending, Household Consumption, Causality, Cointegration
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