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ABSTRACT justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
This study contributed to the debate on the relationship between military expenditure and economic growth in less-developed economies by investigating the trend; causal relationship and the effect of military expenditure on economic growth in five selected sub-Sahara African Countries namely:- Angola, Cameroon, Kenya, Nigeria and South-Africa; for the period 1986 to 2014. justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
The study employed the Error Correction Mechanism (ECM) using time series data to analyze the effect of military expenditure on economic growth. Granger causality test was used to analyze causal relationship between military expenditure and economic growth. Also, descriptive analysis; graphs was used to analyze the trend pattern in military expenditure in each country. justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
The findings of the study indicated that military spending has a negative and insignificant effect on economic growth (t = -4.30, p < 0.05). Furthermore, the study revealed uni-directional causality which runs from military expenditure to economic growth in sub-Saharan African countries (x2=0.0279, p < 0.05). The study also revealed an upward trend in military expenditure in the five selected countries. A long –run relationship among the variables is also revealed justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
The study concludes that military expenditure is growth retarding in the region. The negative relationship between military expenditure and economic growth implies that the policy makers need to have a greater focus on development spending as compared to military spending. justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
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TABLE OF CONTENTS justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
Pages justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
Title i justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
Authorization to copy ii justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
Certification iii justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
Dedication iv justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
Acknowledgements v justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
Table of Contents vii justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
List of Tables x justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
List of Figures xi justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
Abstract xii justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
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1. INTRODUCTION justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
1.1 Background to the Study 1 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
1.2 Statement of the Problem 4 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
1.3 Research Questions 6 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
1.4 Objectives of the Study 7 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
1.5 Justification for the Study 7 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
1.6 Scope of the Study 8 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
2. LITERATURE REVIEW justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
2.1 Review of Theoretical Literature 9 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
2.2 Review of Empirical Literature 21 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
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3. METHODOLOGY justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
3.1 Theoretical Framework 27 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
3.2 Model Specification 29 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
3.3 Source of Data and Measurement of Variables 34 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
3.4.Techniques of data analysis 35 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
4. DATA ANALYSIS AND DISCUSSION justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
4.1.1 Descriptive Statistics of the Data 37 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
4.1.2 Panel Unit Root Test 40 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
4.1.3 Lag length selection criteria 44 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
4.1.4 Panel Co-integration Test 46 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
4.2 Trend and pattern of Military Expenditure in selected Sub-Sahara African countries 49 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
4.2.1 Pooled Trend of Military Expenditure in selected Sub-Sahara African countries 49 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
4.2.2 Trend of Military Expenditure in Angola 53 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
4.2.3 Trend of Military Expenditure in Cameroon 56 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
4.2.4 Trend of Military Expenditure in Kenya 59 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
4.2.5 Trend of Military Expenditure in Nigeria 62 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
4.2.6 Trend of Military Expenditure in South Africa 65 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
4.3 Direction of causal relationship between Military Expenditure and Economic Growth in Selected Sub-Saharan African Countries 68 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
4.4 Relationship between Military Expenditure and Economic Growth in the Selected Sub-Saharan African Countries 73 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
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5. SUMMARY, CONCLUSION AND RECOMMENDATIONS justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
5.1 Summary 77 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
5.2 Conclusion 79 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
5.3 Recommendations 79 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
5.4 Contribution to Knowledge and Suggestions for further Research 80 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
Appendices 82 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
References 87 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
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LIST OF TABLES justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
Table 4.1: Descriptive Statistics of variables in Logarithm form 42 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
Table 4.2: Panel Unit Root (with individual intercept) 45 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
Table 4.3: Panel Unit Root (with individual intercept and trend) 46 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
Table 4.4: Lag length selection criterion 48 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
Table 4.5: Panel Co-integration Test 50 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
Table 4.6: Individual Cross Section Results 51 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
Table 4.7: VEC Granger Causality/Block Exogeneity Wald Tests 67 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
Table 4.8: Variance Decomposition 70 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
Table 4.9: Hausman Test 74 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
Table 4.10: Fixed random effect of military expenditure on economic growth in the selected sub-Saharan African Countries 74 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
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LIST OF FIGURES justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
Figure 4.1: Trend of Military Expenditure in Sub-Saharan African Countries 54 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
Figure 4.2: Growth Rate of Military Expenditure in Sub-Saharan African 55 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
Figure 4.3: Trend of Military Expenditure in Angola 57 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
Figure 4.4: Growth Rate of Military Expenditure in Angola 57 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
Figure 4.5: Trend of Military Expenditure in Cameroon 59 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
Figure 4.6: Growth Rate of Military Expenditure in Cameroon 59 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
Figure 4.7: Trend of Military Expenditure in Kenya 61 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
Figure 4.8: Growth Rate of Military Expenditure in Kenya 61 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
Figure 4.9: Trend of Military Expenditure in Nigeria 63 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
Figure 4.10: Growth Rate of Military Expenditure in Nigeria 63 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
Figure 4.11: Trend of Military Expenditure in South Africa 65 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
Figure 4.12: Growth Rate of Military Expenditure in South Africa 65 justify;line-height:200%;mso-layout-grid-align:none;text-autospace:none">
Figure 4.13: Impulse Response Graph