Military Expenditure, Institution and Inclusive Growth in South Africa
Military Expenditure, Institution and Inclusive Growth in South Africa

Summary/Abstract: The effect of military expenditure on growth is a longstanding debate in defence economics and peace literatures. The paper investigated the combined impact of military expenditure and Institutional quality on South Africa Inclusive growth. The authors add to the defence literature by constructing an inclusive growth index for South Africa, so as to capture the joint real effect of military expenditure and institutional quality. Only corruption was selected as a reliable proxy for institutional quality, since corruption is often a symptom of bad institution. Using data from 1984 to 2017, the result suggests that the impact of military expenditure on South Africa inclusive growth is positive and significant whereas military expenditure impact in the presence of corruption retards South Africa inclusive growth.

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