Authors: Tsung-Pao Wu
Addresses: School of Accounting and Finance, Zhuhai Campus, Beijing Institute of Technology, Zhuhai City, Guangdong Province, 519088, China
Abstract: This study explores the causal linkages between military expenditure and globalisation in seven Eastern Asian countries (China, Japan, Korea, Malaysia, the Philippines, Singapore, and Thailand) by analysing the seven countries for the period 1989-2012. Panel causality was examined to explain dependency and heterogeneity across countries. The results of one-way Granger causality show that globalisation influenced military expenditures in Japan, Korea, and Thailand. Moreover, military expenditure caused globalisation only in Singapore. However, the result shows that there is no causal interaction between globalisation and military expenditure in any of the studied Eastern Asian countries. The findings of this study could provide important policy implications for the Eastern Asian countries under study.
Keywords: military expenditure; globalisation; dependency and heterogeneity; bootstrap panel Granger causality test; Eastern Asian countries.
International Journal of Economic Policy in Emerging Economies, 2017 Vol.10 No.4, pp.349 - 364
Available online: 04 Jan 2018 *Full-text access for editors Access for subscribers Purchase this article Comment on this article