NSU Research Contributions
Title : Military Spending as another Cause of the Failure of the PPP
Authors : Mohsen Bahmani-Oskooee, Gour Goswami
| Journal Title: Applied Economics Letters | Volume Number: 12 | Publication Year : 2005 | Issue Number: 11 |
| Index: scopus | Ranking: Q3 | ISSN: 13504851, 14664 | Publisher Name: Taylor & Francis |
| Pages : 663-667 | |||
| Funding Source : None |
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Direct Sustainable Development Goals : SDG9 Industry, Innovation & Infrastructure |
Indirect Sustainable Development Goals : SDG8 Decent Work & Economic Growth |
Sustainable Development Sub Goals : Develop quality, sustainable infrastructure Increase the access of small-scale industrial enterprises to financial services and value chains Support infrastructure in developing countries Sustain per capita economic growth |
| Impact statement: In a recent article, with a strong theoretical argument but poor empirical support, military spending was identified as a determinant of the real exchange rate or a factor causing the PPP to deviate from the equilibrium exchange rate. The poor empirical results were mostly due to a small number of observations (21 cross-sectional). This article employs pooled data from 37 developing countries over the 1985–1998 period and provides very strong empirical support for the notion that increased military spending can indeed cause the PPP to deviate from the equilibrium exchange rate. | Collaboration: Partner University | Keywords: PPP, Military Spending |
