Abstract
The determinants of military expenditures in Pakistan were investigated using auto regressive distributed lag (ARDL) bound testing. Time series data from 1975 to 2020 was taken from World Bank’s World Development Indicators (2020). The results show that the variables in the military expenditures equation have a long run cointegration among variables. In the disturbances, the results have no autoregressive conditional heteroscedasticity (ARCH), serial correlation and heteroscedasticity. The normality test Jarque-Bera also suggests that stochastic disturbances have a normal distribution. shows that models are shown in their best shape. As a result, the error correction model's residual properties and stability tests are satisfied. We conclude that the government should focus on these empirical findings while formulating military expenditures for Pakistan: Government of Pakistan should focus on increasing the GDP growth so that military expenditures should be met according to the requirement, as there is positive association between GDP growth and military Expenditures. FDI can play a major role in increasing GDP growth.
Keywords:
Article Details
- Year: 2023
- Volume: 44
- Issue: 3
- Pages: 1 - 20
- Accepted: 05.09.2022
-
DOI:
https://doi.org/10.5281/zenodo.16902730 -
Full Text (PDF)
2 Views 2 Downloads
How to Cite?
Muhammad Ajmair, Shafaq Tariq, Khadim Hussain (2023). The Determinants of Military Expenditures in Pakistan. Journal of Economic Cooperation and Development, 44(3), 1-20. https://doi.org/10.5281/zenodo.16902730
