Iranian government budget on military over the last decade has been higher than the average of the world. The current increasing international sanctions aim to reduce the military capabilities and capacities of the Iranian government. In this study, we analyze the response of the Iranian economy...

In recent years, there has been a renewed interest in the fact that a change in exchange rates has an impact on main economic indicators and therefore on macroeconomic performance. The aim of this paper is to study the implications of the relationship between exchange rates and changes in...

Fiscal policy can affect monetary policy either through debt monetisation or through a direct effect on price dynamics. The former is the conventional classical view rooted in the quantity theory of money while the latter is the modern view of the Fiscal Theory of Price Determination. Based on...

This paper is the first attempt to investigate the causal relationship between military spending, terrorist attacks and intensity of terrorism in Pakistan, by applying ARDL approach to cointegration and Innovation Accounting approach for causality analysis. The results indicate that war on...

The Kantian thought had advanced the idea that wars and military expenditure should decrease as long as democracy widens across the World. Historical evidence seems to invalidate this wisdom because frequency of wars is ncreasing over time and a large amount of public resources is still being...

This paper explores the effect of military expenditures on external debt in case of Pakistan over the period of 1973-2009. For this purpose, ARDL bounds testing approach is used to examine cointegration between the variables. ADF, P-P and ADF-GLS, Clemente et al. (1998) unit root tests are...

In-depth analysis of problems confronting both the U.S. budget and job market, while presenting a logical remedy for each dilemma. Problems addressed include the growing entitlement spending caused by increased lifespan since passing Medicare and Social Security, military spending on overseas...

This paper considers the effects of corruption and government spending on economic growth. It starts from an endogenous growth model and extends it to account for the detrimental effects of corruption on the potentially productive components of government spending, namely military and investment...

The relationship between military spending and economic inequality is not well documented within the empirical literature, while numerous studies have uncovered the linkages between military spending and other macroeconomic variables, such as economic growth, unemployment, purchasing power...

In the light of the exigency and apparent irrationality of war and, the fact that most Heavily Indebted Poor Countries (HIPCs) in Africa are associated with prolonged conflicts, there is more than a suspicion that military spending contributes to the indebtedness of Africa’s conflict...