Military Spending, Inequality and Economic Growth: Evidence from Pakistan

Muhammad Ramzan Sheikh, Fareed Sharif Farooqi, Asad Abbas

Abstract


Abstract

A broad strand of literature envisages military spending as a cogent factor for economic growth. A little effort has been made for finding this link for inequality. This study breaks the ice by exploring the link among military spending, inequality and economic growth using the Generalized Method of Moments (GMM) technique over the period of 1972 to 2013. Using the augmented Solow growth model with Harrod-neutral technology for the first time in Pakistan, the study finds positive link between military spending and growth. Inequality turns out to be negatively associated with growth. The study also enlists some policy implications. 

Key Words: Military spending, Inequality, Growth, Pakistan, GMM.



Full Text:

PDF

Refbacks

  • There are currently no refbacks.


............................................................................................................................................................................................................................

HOW DO YOU REGISTER and SUBMIT AN ARTICLE?

* Registering and Logging in

* Submitting an Article