Abstract
The purpose of this study is to examine the moderating role and threshold level of institutional quality in the nexus between military expenditure and economic growth for a panel of 31 African nations. The results reveal that military expenditure negatively influences growth, while institutional quality positively affects growth. The interactive term of institutional quality and military expenditure significantly positively influence economic growth. However, the threshold level of institutional quality for military expenditure to translate into economic growth in the region is found to be 4.61 on an ordinary scale of 0–10, although most countries operate below the threshold point of institutional quality. The study concludes that strong institutional quality serves as important absorptive capacity for military expenditure to drive economic growth in the region.
The list of the countries are Algeria, Angola, Botswana, Burkina Faso, Cameroon, Congo Democratic Republic, Congo Republic, Cote d’Ivore, Egypt, Gabon, Gambia, Ghana, Guinea, Guinea-Bissau, Kenya, Madagascar, Malawi, Mali, Morocco, Mozambique, Namibia, Niger, Nigeria, Senegal, Sierra Leone, South Africa, Togo, Tunisia, Uganda, Zambia and Zimbabwe.
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Articles in the same Issue
- Frontmatter
- Survey or Review
- “This Research has Important Policy Implications…”
- Research Articles
- Revisiting the Military Expenditure-Growth Nexus: Does Institutional Quality Moderate the Effect?
- Production Network and Emission Control Targets-Theoretical Approach
- Assessment of the United Nations Good Offices for Conflict Resolution in Yemen
Articles in the same Issue
- Frontmatter
- Survey or Review
- “This Research has Important Policy Implications…”
- Research Articles
- Revisiting the Military Expenditure-Growth Nexus: Does Institutional Quality Moderate the Effect?
- Production Network and Emission Control Targets-Theoretical Approach
- Assessment of the United Nations Good Offices for Conflict Resolution in Yemen