Military expenditure, economic growth and structural instability: A case study of South Africa

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dc.creatorAye, Goodness
dc.creatorBalcilar, Mehmet
dc.creatorDunne, John P.
dc.creatorGupta, Rangan
dc.creatorvan Eyden, Reneé
dc.date2014-06-25T09:38:27Z
dc.date2014-06-25T09:38:27Z
dc.date2014
dc.date.accessioned2015-05-28T10:06:41Z
dc.date.available2015-05-28T10:06:41Z
dc.date.issued2015-05-28
dc.descriptionThis paper contributes to the growing literature on the milex-growth nexus, by providing a case study of South Africa and considering the possibility of structural breaks by applying newly developed econometric methods. Using full sample bootstrap Granger non-causality tests, no Granger causal link is found between military expenditure and GDP for 1951–2010, but parameter instability tests show the estimated VARs to be unstable. Using a bootstrap rolling window estimation procedure, however, finds evidence of bidirectional Granger causality in various subsamples. This implies standard Granger non-causality tests, which neither account for structural breaks nor time variation may be invalid.
dc.identifierAye, G., Balcilarb, M., Dunne, J.P., Gupta, R. & van Eyden, R. (2014). Military expenditure, economic growth and structural instability: A case study of South Africa, Defence and Peace Economics.
dc.identifierhttp://www.tandfonline.com/doi/abs/10.1080/10242694.2014.886432#.U6qYA_mSz9U
dc.identifierhttp://hdl.handle.net/11090/734
dc.identifier.ris TY - Journal Article DA - 2015-05-28 DB - OpenUCT DP - University of Cape Town KW - South Africa KW - Milex-growth nexus KW - Granger non-causality tests KW - Military expenditure KW - GDP LK - https://open.uct.ac.za PB - University of Cape Town PY - 2015 T1 - Military expenditure, economic growth and structural instability: A case study of South Africa TI - Military expenditure, economic growth and structural instability: A case study of South Africa UR - http://hdl.handle.net/11090/734 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11090/734
dc.languageen
dc.publisherDefence and Peace Economics
dc.publisher.departmentSALDRUen_ZA
dc.publisher.facultyFaculty of Commerceen_ZA
dc.publisher.institutionUniversity of Cape Town
dc.subjectSouth Africa
dc.subjectMilex-growth nexus
dc.subjectGranger non-causality tests
dc.subjectMilitary expenditure
dc.subjectGDP
dc.titleMilitary expenditure, economic growth and structural instability: A case study of South Africa
dc.typeJournal Article
uct.type.publicationResearchen_ZA
uct.type.resourceArticleen_ZA
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