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<p>The objective of this paper is to analyze the role of institutional quality in the relationship between military spending and economic growth in sub-Saharan Africa. For this purpose, a dynamic panel model was specified and estimated by the generalized method of moments (GMM) in system. Using World Bank data (WDI) over the period 2002–2021, the model results showed that military spending has a positive and significant influence on economic growth in Africa. In addition, the estimation results reveal that institutional quality reinforces the positive influence of military spending on economic growth in Africa. Also, the estimation results of the interaction model by region show that the interaction between military spending and institutional quality is significantly positive on economic growth in the Economic Community of West African States (ECOWAS) and the Southern African Development Community (SADC). The study therefore suggests the implementation of austerity policies in order to improve institutional quality, a guarantee of better orientation of military expenditure towards productive sources.</p>

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Military expenditure and economic growth in African countries: the role of institutional quality

  • 期刊论文

  • 出版模式：

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  • 发表日期：

    2025年4月28日

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  • Mingnimon Ghislain Gnidehou,
  • Charles Yédéhou Faton

摘要

The objective of this paper is to analyze the role of institutional quality in the relationship between military spending and economic growth in sub-Saharan Africa. For this purpose, a dynamic panel model was specified and estimated by the generalized method of moments (GMM) in system. Using World Bank data (WDI) over the period 2002–2021, the model results showed that military spending has a positive and significant influence on economic growth in Africa. In addition, the estimation results reveal that institutional quality reinforces the positive influence of military spending on economic growth in Africa. Also, the estimation results of the interaction model by region show that the interaction between military spending and institutional quality is significantly positive on economic growth in the Economic Community of West African States (ECOWAS) and the Southern African Development Community (SADC). The study therefore suggests the implementation of austerity policies in order to improve institutional quality, a guarantee of better orientation of military expenditure towards productive sources.