Jesmy, Abdul Rasheed Sithy and Abd Karim, Mohd Zaini (2019) Does defence expenditure crowd out human capital expenditure? An empirical investigation in South Asia. International Journal of Advanced Science and Technology, 28 (1). pp. 294-305. ISSN 2005-4238

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Abstract

Military expenditure and human capital expenditure are important components of central government expenditure. It has been accepted that high and increasing military expenditure may crowd out resources from human development expenditure, as the sources of government revenue are limited. The purpose of this study is to examine the relationship between military expenditure and, education and health expenditure in conflict affected five countries in South Asia, namely, Bangladesh, India, Nepal, Pakistan and Sri Lanka from the period 1980 to 2014, by applying the ARDL bounds test approach to cointegration and VECM Granger causality method. The finding of this study shows a significant negative effect of military expenditure on both health and education expenditure in several countries in South Asia. Moreover, it also provides an evidence for Granger causality in the long-run and in the short-run in most of the countries in South Asia. In addition, the findings of this study serve as a guide to the government and the policy-makers should take rigorous steps to minimize military expenditure through preventing conflict and enhancing good governance, which eventually enhance investment in human development

Item Type:	Article
Uncontrolled Keywords:	Cointegration, Granger causality, Human development expenditure, Military Expenditure, South Asia
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions:	Othman Yeop Abdullah Graduate School of Business
Depositing User:	Mrs. Norazmilah Yaakub
Date Deposited:	13 Aug 2020 02:19
Last Modified:	13 Aug 2020 02:19
URI:	https://repo.uum.edu.my/id/eprint/27324

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