HTML
PDF
FLIP
XML
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
This journal is licensed by a Creative Commons Attribution License (CC BY-NC-SA 4.0) Attribution-Non Commercial 4.0 International. For the CC licenses, the principle isthe creative freedom. This system complements the copyright without opposing it, conscious of its importance in our culture. The content of the articles is the responsibility of each author, and does not compromise in any way, to the journal or the university. It allows the transmission and reproduction of titles, abstracts and full content, with academic, scientific, cultural ends, provided acknowledgment of the respective source. This work cannot be used for commercial purposes.
They journal does not charge authors for submission or publication.
Abstract
The purpose of this study is to investigate the impact of military expenditure on unemployment in Bangladesh, examining the cointegration among unemployment, military expenditure, and foreign direct investment. It also sheds light on the short and long
run dynamics of the variables under consideration. The study employs the ARDL bounds testing approach to investigate the cointegration among the variables using time series annual data from the period of 1990-2018. The dependant variable is unemployment and military expenditure and FDI are the independent variables. This
research found a long run relationship among the variables. An increase in military expenditure significantly reduces unemployment in the short run, however, no significant long-run relationship is found. The higher FDI, the higher unemployment in the long run. This study contributes to fill the research gap regarding the
impact of military expenditure and FDI on unemployment. To the best of our knowledge, this is the first study to examine the relationship among unemployment, military expenditure and FDI in Bangladesh using ARDL bounds testing approach with time series annual data.
Keywords:
References
Ahmad, F. (2013). The effect of oil prices on unemployment: Evidence from Pakistan. Business and Economics Research Journal, 4(1), 43.
Azam, M., Khan, F., Zaman, K., & Rasli, A. Md. (2016). Military expenditures and unemployment nexus for selected South Asian Countries. Social Indicators Research, 127(3), 1103–1117. https://doi.org/10.1007/s11205-015-0993-7 .
Aijaz Syed, A. (2021). The asymmetric relationship between military expenditure, economic growth and industrial productivity: An empirical analysis of India, China and Pakistan via the NARDL approach. Revista Finanzas y Política Económica, 13(1), 77-97.
Anwar, A. (2017). The Relationship between Poverty, Income Inequality and Unemployment: Evidence from ARDL and Bound Testing Approach.
Arouri, M., Ben Youssef, A., M'henni, H., & Rault, C. (2014). Exploring the causality links between energy and employment in African countries. IZA Discussions Pappers.
Bakirtas, T., & Akpolat, A. G. (2020). The relationship between crude oil exports, crude oil prices and military expenditures in some OPEC countries. Resources Policy, 67, 101659. https://doi.org/10.1016/j.resourpol.2020.101659
Brincikova, Z., & Darmo, L. (2014). The impact of FDI inflow on employment in V4 countries. European Scientific Journal, 1(Special Ed.). https://doi.org/10.19044/esj.2014.v10n7p%25p
Chester, E. (1978). Military spending and capitalist stability. Cambridge Journal of Economics, 2(3), 293-298.
Chowdhury, M., & Hossain, M. (2014). Determinants of unemployment in Bangladesh: A case study. Developing Country Studies, 4(3).
Dickey, D. A., & Fuller, W. A. (1979). Distribution of the estimators for autoregressive time series with a unit root. Journal of the American Statistical Association, 74(366a), 427-431. https://doi.org/10.2307/2286348
Dunne, P., & Smith, R. (1990). Military expenditure and unemployment in the OECD. Defence and Peace Economics, 1(1), 57-73. https://doi.org/10.1080/10430719008404650
Eita, J. H., & Ashipala, J. M. (2010). Determinants of unemployment in Namibia. International Journal of Business and Management, 5(10), 92. https://doi.org/10.5539/ijbm.v5n10p92
Engle, R. F., & Granger, C. W. (1987). Co-integration and error correction: representation, estimation, and testing. Econometrica: Journal of the Econometric Society, 251-276. https://doi.org/10.2307/1913236
George, E., & Oseni, J. (2012). The relationship between electricity power and unemployment rates in Nigeria. Australian Journal of Business and Management Research, 2(2), 10. https://doi.org/10.52283/NSWRCA.AJBMR.20120202A02
Henderson, E. A. (1998). Military spending and poverty. The Journal of Politics, 60(2), 503-520. https://doi.org/10.2307/2647920
Hooker, M., & Knetter, M. (1994). Unemployment effects of military spending: evidence from a panel of states. National Bureau of Economic Research, NBER Working Papers 4889
Hoover, K. D. (1995). Relative wages, rationality, and involuntary unemployment in Keynes's labor market. History of Political Economy, 27(4), 653-685.
Johansen, S. (1991). Estimation and hypothesis testing of cointegration vectors in Gaussian vector autoregressive models. Econometrica: Journal of the Econometric Society, 1551-1580. https://doi.org/10.2307/2938278
Kollias, C., Paleologou, S.-M., & Tzeremes, P. (2020). Defence spending and unemployment in the USA: Disaggregated analysis by gender and age groups. Peace Economics, Peace Science and Public Policy, 26(2). https://doi.org/10.1515/peps-2018-0052 .
Malizard, J. (2014). Defense spending and unemployment in France. Defence and Peace Economics, 25(6), 635-642. https://doi.org/10.1080/10242694.2013.857450
Maqbool, M. S., Mahmood, T., Sattar, A., & Bhalli, M. (2013). Determinants of unemployment: Empirical evidences from Pakistan. Pakistan Economic and Social Review, 51(2), 191-208.
Mpanju, A. K. (2012). The impact of foreign direct investment on employment creation in Tanzania. International Journal of Business Economics & Management Research, 2(1), 126-139.
Pesaran, M. H., & Shin, Y. (1998). An autoregressive distributed-lag modelling approach to cointegration analysis. Econometric Society Monographs, 31, 371-413.
Pesaran, M. H., Shin, Y., & Smith, R. J. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16(3), 289-326. https://doi.org/10.1002/jae.616
Raju, M. H., & Ahmed, Z. (2019). Effect of military expenditure on economic growth: evidences from India, Pakistan, and China using cointegration and causality analysis. Asian Journal of German and European Studies, 4, 1-8. https://doi.org/10.1186/s40856-019-0040-6
Satya, P. (1996). Defence spending and unemployment rates. An empirical analysis for the OECD. Journal of Economic Studies, 23(2), 44-54. https://doi.org/10.1108/01443589610109667
Siddika, R., & Ahmad, S. (2022). Trade liberalization and economic growth: A cross-country study using updated Sachs-Warner Index. Asian Journal of Economic Modelling, 10(3), 216-225. https://doi.org/10.55493/5009.v10i3.4581
Tang, J. H., Lai, C. C., & Lin, E. S. (2009). Military expenditure and unemployment rates: Granger causality tests using global panel data. Defence and Peace Economics, 20(4), 253-267. https://doi.org/10.1080/10242690903105257
Zeb, N., Qiang, F., & Sharif, M. (2014). Foreign direct investment and unemployment reduction in Pakistan. International Journal of Economics and Research, 5(2), 10-17.
Zhong, M., Chang, T., Tang, D. P., & Wolde-Rufael, Y. (2015). The causal nexus between military spending and unemployment in the G7: A bootstrap panel causality test. Defence and Peace Economics, 26(6), 609–622. https://doi.org/10.1080/10242694.2014.994835 .
Yule, G. U. (1926). Why do we sometimes get nonsense-correlations between Time Series?--a study in sampling and the nature of time-series. Journal of the Royal Statistical Society, 89(1), 1-63. https://doi.org/10.2307/2341482
World Development Indicators DataBank. (n.d.). Retrieved March 18, 2023, from https://databank.worldbank.org/source/world-development-indicator
Reference by
