Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

The effects of military expenditures on labor productivity, innovation and economic growth for the most militarized countries: panel data analysis

The effects of military expenditures on labor productivity, innovation and economic growth for... There is extensive literature on the effect of military expenditure on economic growth. However, there is also a wide gap in the literature on the relationship between productivity and innovation, which is considered the driving force of economic growth and military expenditures. To this end, this study examines the effect of military expenditures on economic growth, innovation and labor productivity for the period 1995–2019 in most militarized countries.Design/methodology/approachThe tests used in the study's empirical analysis are techniques that take into account cross-sectional dependence and heterogeneity. The stationarity of the variables was tested with the Pesaran’s (2007) unit root test. Then, empirical findings were revealed based on the analysis through Westerlund’s (2008) cointegration test and Emirmahmutoglu and Kose’s (2011) panel causality test.FindingsAccording to the empirical results, there is a long-run relationship, in other words, a cointegration between military expenditures and productivity, innovation and economic growth. Additionally, there are causality relationships between military expenditures and productivity, innovation and economic growth.Practical implicationsThese results support the arguments of military Keynesianism and the Benoit hypothesis.Originality/valueDespite the widespread theoretical debate, no empirical study tests the effect of military expenditure on productivity and innovation to the author's best knowledge. Hence, this study aims to fill this gap in the literature. Moreover, the fact that the econometric method used is based on second generation tests and the timeliness of the period range makes the study's findings more significant. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Kybernetes Emerald Publishing

The effects of military expenditures on labor productivity, innovation and economic growth for the most militarized countries: panel data analysis

Inal, Veysel; Gurdal, Temel; Degirmenci, Tunahan; Aydin, Mucahit
Kybernetes , Volume 53 (3): 20 – Feb 13, 2024
Download PDF
20 pages

Loading next page...
 
/lp/emerald-publishing/the-effects-of-military-expenditures-on-labor-productivity-innovation-cypGt0HOG7

References (76)

Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
0368-492X
DOI
10.1108/k-06-2022-0852
Publisher site
See Article on Publisher Site

Abstract

There is extensive literature on the effect of military expenditure on economic growth. However, there is also a wide gap in the literature on the relationship between productivity and innovation, which is considered the driving force of economic growth and military expenditures. To this end, this study examines the effect of military expenditures on economic growth, innovation and labor productivity for the period 1995–2019 in most militarized countries.Design/methodology/approachThe tests used in the study's empirical analysis are techniques that take into account cross-sectional dependence and heterogeneity. The stationarity of the variables was tested with the Pesaran’s (2007) unit root test. Then, empirical findings were revealed based on the analysis through Westerlund’s (2008) cointegration test and Emirmahmutoglu and Kose’s (2011) panel causality test.FindingsAccording to the empirical results, there is a long-run relationship, in other words, a cointegration between military expenditures and productivity, innovation and economic growth. Additionally, there are causality relationships between military expenditures and productivity, innovation and economic growth.Practical implicationsThese results support the arguments of military Keynesianism and the Benoit hypothesis.Originality/valueDespite the widespread theoretical debate, no empirical study tests the effect of military expenditure on productivity and innovation to the author's best knowledge. Hence, this study aims to fill this gap in the literature. Moreover, the fact that the econometric method used is based on second generation tests and the timeliness of the period range makes the study's findings more significant.

Journal

Kybernetes – Emerald Publishing

Published: Feb 13, 2024

Keywords: Military expenditures; Labor productivity; Innovation; Panel data analysis

There are no references for this article.