Contents of the volume

2016, Volume 69 - Issue 3

ISSN: 2499-8265
RSS feed citation: at CitEc
Publication date: 01 August 2016

MILITARY SPENDING-HOUSEHOLD CONSUMPTION NEXUS: A HETEROGENEOUS PANEL DATA APPROACH

Emmanuel Anoruo, Uchenna Akpom

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CAUSALITY BETWEEN OIL PRICE AND SOUTH AFRICA'S FOOD PRICE: TIME VARYING APPROACH

Goodness C. Aye

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LIBERALIZATION OF TRADE WITH THE EFTA COUNTRIES: SOME EVIDENCE FROM BOSNIA AND HERZEGOVINA

Safet Kurtovic, Blerim Halili, Nehat Maxhuni, Sead Talovic

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DETERMINANTS OF WESTERN BALKAN EMIGRATION FLOWS: AN EMPIRICAL ANALYSIS

Visar Malaj, Stefano De Rubertis

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DETERMINANTS OF SOUTH AFRICA'S EXPORTS OF AGRICULTURE, FORESTRY AND FISHING PRODUCTS TO SADC: A GRAVITY MODEL APPROACH

Teboho Jeremiah Mosikari, Joel Hinaunye Eita

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Genoa Chamber of Commerce
Economia Internazionale / International Economics

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Corresponding author

Emmanuel ANORUO, Department of Accounting and Management Information Systems, Coppin State University, Baltimore, Mariland USA

Co-authors

Uchenna AKPOM, Department of Accounting, Finance and Economics, The University of West Alabama

Military Spending-Household Consumption Nexus: A Heterogeneous Panel Data Approach

Pages

175-192

Abstract

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.

JEL classification

E21, E62

Keywords

Military Spending, Household Consumption, Causality, Cointegration

Index

  1. Introduction
  2. Methodology
  3. Data and descriptive statistics
  4. Empirical results
  5. Summary and implication

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