Citation

Solarin, Sakiru Adebola (2017) Disaggregated military expenditure and the debt level in Nigeria. Quality & Quantity, 51 (4). pp. 1687-1705. ISSN 0033-5177; eISSN: 1573-7845

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Abstract

The aim of this paper is to investigate the effect of military spending on both external debt and internal debt in Nigeria for the period of 1981–2012. Unlike the existing literature, the total military expenditure series is further disaggregated into recurrent and capital military expenditures. We employ a newly-introduced combined cointegration approach to test for long run relationship in the variables. After establishing cointegration relationship, the ARDL, FMOLS and DOLS methods are used in computing the long run estimates. Overall, our results reveal that a rise in military spending promotes external and internal debt, with recurrent expenditure having more impact on the level of indebtedness.

Item Type:	Article
Uncontrolled Keywords:	Military expenditure, Debt burden, Unit root, Cointegration
Subjects:	H Social Sciences > HG Finance > HG4001-4285 Finance management. Business finance.
Divisions:	Faculty of Business (FOB)
Depositing User:	Ms Suzilawati Abu Samah
Date Deposited:	07 Dec 2017 13:29
Last Modified:	07 Dec 2017 13:29
URII:	http://shdl.mmu.edu.my/id/eprint/6572

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