Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/188266 
Year of Publication: 
2016
Citation: 
[Journal:] Pakistan Journal of Commerce and Social Sciences (PJCSS) [ISSN:] 2309-8619 [Volume:] 10 [Issue:] 3 [Publisher:] Johar Education Society, Pakistan (JESPK) [Place:] Lahore [Year:] 2016 [Pages:] 525-546
Publisher: 
Johar Education Society, Pakistan (JESPK), Lahore
Abstract: 
Defense spending is a multifaceted phenomenon. In recent years, economists and policy makers have been interested in the explanation of the relationship between defense spending and macroeconomic variables especially growth. This study explores the connection between defense outlays and growth in two neighboring but hostile countries i.e. Pakistan and India by applying GMM technique to Deger-type model. The findings of study for Pakistan reveal that the net effect of defense spending is positive while for India it turns out to be negative. It means that the defense sector in Pakistan fosters the economic growth via aggregate demand and modernization effects. For India, defense sector is hampering growth due to reallocation of resources and creation of new resources arguments.
Subjects: 
defense expenditures
economic growth
deger-type analysis
GMM approach
Creative Commons License: 
cc-by-nc Logo
Document Type: 
Article

Files in This Item:
File
Size
371.04 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.