Sources of labour productivity: A panel investigation of the role of military expenditure

Solarin, Sakiru Adebola (2015) Sources of labour productivity: A panel investigation of the role of military expenditure. Quality & Quantity. ISSN 1573-7845

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Abstract

The objective of this paper is to examine the effect of military expenditure on productivity performance in 70 countries, over the period 1989–2011. We employ the labour productivity as a measure of productivity, while the military burden is initially utilized as an indicator of the level of military expenditure within the framework of a transcendental production function. Applying the system GMM method, it is observed that defence expenditure exerts a negative and statistically significant effect on labour productivity. The negative impact of military expenditure still holds, when an alternative measure of military spending is introduced into the model. The main policy implication of these results is that the overall productivity would be expected to improve, if military expenditures are replaced by civilian expenditures.

Item Type: Article
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HF Commerce
Divisions: Faculty of Business (FOB)
Depositing User: Ms Nurul Iqtiani Ahmad
Date Deposited: 27 Mar 2015 04:05
Last Modified: 27 Mar 2015 04:05
URI: http://shdl.mmu.edu.my/id/eprint/6090

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