Effects of Military Spending on Inclusive Growth in Central African Countries


Authors : Oumarou Bobbo

Volume/Issue : Volume 9 - 2024, Issue 12 - December

Google Scholar : https://tinyurl.com/2s36s8vw

Scribd : https://tinyurl.com/4352u4x7

DOI : https://doi.org/10.5281/zenodo.14505579

Abstract : This study aims to examine the effects of military spending on inclusive growth in central african countries. The paper uses a sample of 6 CEMAC countries from different sources (WDI and WGI databases) for the period 1990-2022 to carry out the analysis. Using the instrumental variables (IV) method, we establish the causal link between military spending and inclusive growth, demonstrating that the latter exerts a negative and significant effect on inclusive growth in the CEMAC region. To consolidate these findings, we subjected our results to a robustness test using the GMM estimation method, thus confirming the negative effect of military spending on inclusive growth in the CEMAC zone. In view of these findings, Central African countries need to improve the quality of their institutions. Based on these findings, a few non- exhaustive policy suggestions can be made to promote inclusive growth in Africa.

Keywords : Military Spending, Inclusive Growth, CEMAC, IV, GMM.

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This study aims to examine the effects of military spending on inclusive growth in central african countries. The paper uses a sample of 6 CEMAC countries from different sources (WDI and WGI databases) for the period 1990-2022 to carry out the analysis. Using the instrumental variables (IV) method, we establish the causal link between military spending and inclusive growth, demonstrating that the latter exerts a negative and significant effect on inclusive growth in the CEMAC region. To consolidate these findings, we subjected our results to a robustness test using the GMM estimation method, thus confirming the negative effect of military spending on inclusive growth in the CEMAC zone. In view of these findings, Central African countries need to improve the quality of their institutions. Based on these findings, a few non- exhaustive policy suggestions can be made to promote inclusive growth in Africa.

Keywords : Military Spending, Inclusive Growth, CEMAC, IV, GMM.

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