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Defense spending and income inequality: evidence from selected Asian countries


Mohd Tahir, Hirnissa and Habibullah, Muzafar Shah and Abdul Hamid, Baharom (2009) Defense spending and income inequality: evidence from selected Asian countries. Modern Applied Science, 3 (5). pp. 96-111. ISSN 1913-1844; ESSN: 1913-1852


This paper examines the causality between defense spending and income inequality in selected Asian countries namely Malaysia, Indonesia, Singapore, Philippines, India and South Korea for the period 1970-2005. Autoregressive Distributed Lag (ARDL) bounds testing procedure is employed to (1) analyze the impact of defense spending on income inequality and (2) the impact of income inequality on defense spending as well. Interestingly our results indicate one way causality running from defense spending to income inequality only for the case of Malaysia and bidirectional causality for the case of Singapore. As for the remaining countries, no meaningful relationship could be detected and it can be seen as sign of good governance in these countries.

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Additional Metadata

Item Type: Article
Divisions: Faculty of Economics and Management
DOI Number: https://doi.org/10.5539/mas.v3n5p96
Publisher: Canadian Center of Science and Education
Keywords: Defense spending; Income inequality; Asian; Bounds testing
Depositing User: Nabilah Mustapa
Date Deposited: 14 Aug 2018 08:51
Last Modified: 14 Aug 2018 08:51
Altmetrics: http://www.altmetric.com/details.php?domain=psasir.upm.edu.my&doi=10.5539/mas.v3n5p96
URI: http://psasir.upm.edu.my/id/eprint/13880
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