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ECONOMIC DETERMINANTS OF DEFENSE EXPENDITURE IN AFRICA: AN EMPIRICAL INVESTIGATION

. Anthony Orji, Anthony Edache Eyimoga, Peter Ngozi Amah, Asidok Nsikhe Okon, Effiong, Charles Efefiom, Ikubor. O. Jude & Onyinye I. Anthony-Orji


Abstract

Sub-Saharan Africa (SSA) countries when compared with other regions of the world, is the poorest region that is plagued with inequality, involuntary relocation and constant conflicts Studies have shown that SSA has the lowest defense expenditure among all regions. This study investigated the impact of economic determinants on defense expenditure in Sub-Saharan Africa (SSA). Employing the Generalized method of moments, the study was done for the period 2004 to 2019. Variables used include previous defense spending, debt stock, FDI, and inflation. The findings showed that previous defense expenditure and all variables used influence current defense expenditure in SSA countries and the impact on defense expenditure are statistically significant. To policy makers, the study suggests that previous defense expenditure should be examined thoroughly before spending on current defense and prices of military hardware should be considered as well. Also, current economic realities should be considered before public expenditure on the military is made

Keywords: Economic, determinants, defense expenditure, Sub-Saharan Africa   

JEL Classification: H5, H56

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