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Empirical Investigation of the Political Determinants of Defense  Expenditure: Evidence from Sub-Saharan Africa

ECO 512: EMPIRICAL INVESTIGATION OF THE POLITICAL DETERMINANTS OF DEFENSE EXPENDITURE: EVIDENCE FROM SUB-SAHARAN AFRICA

ByAnthony Orji
SchoolUniversity of Nigeria, Nsukka
DepartmentEconomics
CategoryAcademic JournalsResearch Papers
Levels100200300400500600Post Graduate
₦ 3000
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Description

Sub Saharan Africa (SSA) is a region that is very young in terms of democratic practices.

This is due to the fact that most SSA countries fought for their independence which was given to the countries in

the region by the Colonialists who are mostly from the United Kingdom, Portugal, France, Belgium etc. This

independence was gotten within the period1960 to 1980. As a result, these new nations in SSA started forming

political parties in other to form governments that will rule their country. However, SSA started witnessing large

scale political instability since the reign of independence. This has led most SSA countries to have authoritarians

as heads of state. In view of these problems, this research investigated the impact of political factors on defense

expenditure in Sub-Saharan Africa (SSA). The study used data covering for

the period 2000 to 2019. Variables used include previous defense expenditure, military in politics, ethnic conflict

and external conflict. Descriptive statistics and unit root test were also carried out. The Generalized method of

moment by Arrelano and Bond (1991) was used for estimation. The findings showed that apart from

previous defense spending, other political factors determined defense expenditure remotely for the period of

study. As a result of this, the study recommends that policy makers should always review previous

military spending and their outcomes before carrying out any other expenditure on defense so as to avoid waste

of scarce resources. Again, political factors should not be used as the only deciding factor when dealing with

spending on defense so as to avoid arms importation which could be used to achieve political aims and for other

negative purposes