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Examining the military spending economic growth nexus in the presence of informality: evidence from the Balkan peninsula

Research output: Contribution to journalArticlepeer-review

2 Citations (Scopus)
4 Downloads (Pure)

Abstract

This paper examines the military expenditure (milex) economic growth nexus, in selected Balkan and peripheral countries from 1990 to 2022, considering the presence of informality within an institutional framework. Specifically, we employ Principal Components Analysis (PCA) to formulate an index of informality and use the Dynamic Ordinary Least Squares (DOLS) and Fully-Modified Ordinary Least Squares (FMOLS) methods to identify the long-run equilibria. To provide a more comprehensive insight, the study also incorporates two types of causality tests – Dumitrescu-Hurlin and Juodis et al. – to determine the direction of the relationships. Our findings indicate that in the long-run milex can be detrimental to economic growth whilst informality boosts it.

Original languageEnglish
Pages (from-to)505-523
Number of pages19
JournalPeace Economics, Peace Science and Public Policy
Volume30
Issue number4
DOIs
Publication statusPublished - 20 Sept 2024

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

  1. SDG 8 - Decent Work and Economic Growth
    SDG 8 Decent Work and Economic Growth

Keywords

  • Balkan peninsula
  • economic growth
  • informality
  • military spending

ASJC Scopus subject areas

  • Sociology and Political Science
  • Economics and Econometrics
  • Political Science and International Relations
  • Management, Monitoring, Policy and Law

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