Impact of defence spending, internal threat, political instability and arms importation on economic growth in Nigeria
The existence of internal threat, political instability and arms importation has led to the rise in defence expenditure in Nigeria. Whether defence expenditure, with or without threat has a benign or malign impact on the economic growth, is a matter that needs rigorous academic investigation. The ob...
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| Main Author: | |
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| Format: | Thesis |
| Language: | English English |
| Published: |
2016
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| Subjects: | |
| Online Access: | https://etd.uum.edu.my/7096/1/s95932_01.pdf https://etd.uum.edu.my/7096/2/s95932_02.pdf https://etd.uum.edu.my/7096/ |
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| Institution: | Universiti Utara Malaysia |
| Language: | English English |
| Summary: | The existence of internal threat, political instability and arms importation has led to the rise in defence expenditure in Nigeria. Whether defence expenditure, with or without threat has a benign or malign impact on the economic growth, is a matter that needs rigorous academic investigation. The objective of this study include examining the impacts of defence expenditure on economic growth in the presence of threats, political instability and arms importation in Nigeria. It also examines the impacts of defence research and development, defence components on the Nigeria`s economic growth. In addition it examines the asymmetric causal relationship between defence expenditure and economic growth in Nigeria. Using the robust Autoregressive Distributive Lag (ARDL) model, and asymmetric causality approach. The results reveal that defence expenditure-internal threat and defence-political instability interactions both have positive and significant impacts on economic growth. On the contrary, it reveals that defence arms import interaction has a significant and negative impact on growth in Nigeria. However, the impact of defence Research and Development on economic growth it is not significant as a result of insufficient funding. The result furthermore found that the causation between defence expenditure on economic growth in Nigeria is unidirectional from defence to economic growth. This implies that defence expenditure stimulates growth during the time of threat and civil unrest. The study recommends a revisit on the funding of defence sector in Nigeria. The current defence budget is grossly inadequate for the defence, considering the threats in Nigeria since it independence and recent threats such as the “Boko Haram” and Niger Delta Militancy among others. Regarding the defence R&D, proper funding, as well as management should be considered on Defence Industrial Cooperation of Nigeria to avoid over dependence on foreign sources |
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