NSU Research Contributions
Title : Military spending and the black market premium in developing countries
Authors : Mohsen Bahmani-Oskooee, Gour Goswami
| Journal Title: Review of Social Economy | Volume Number: 64 | Publication Year : 2006 | Issue Number: 1 |
| Index: scopus | Ranking: Q3 | ISSN: 00346764, 14701 | Publisher Name: Taylor & Francis |
| Pages : 77-91 | |||
| Funding Source : None |
|
Direct Sustainable Development Goals : SDG8 Decent Work & Economic Growth |
Indirect Sustainable Development Goals : SDG8 Decent Work & Economic Growth |
Sustainable Development Sub Goals : Sustain per capita economic growth Increase trade support for least developed countries |
| Impact statement: Researchers who have been concerned with the economic implications of military spending have mostly concentrated on its impact on economic growth, corruption, the real exchange rate, and inflation. In this paper, we investigate the impact of military spending on the black-market premium, an area that has not been examined to date. After adding a measure of military spending to a well-established model of black market premium from the literature, we estimate the model by pooling annual data over the 1985 – 1998 period across 61 developing countries. Results from five panel specifications provide strong evidence that higher military spending is associated with a higher black-market premium. | Collaboration: Partner University | Keywords: Military Spending, Black Market Premium, Developing Countries |
