Military Expenditure, Institutional Quality and Economic Growth in Nigeria
The study investigates the nexus between military expenditure, institutional quality and Nigerian economic growth between 1984 and 2017. Variables such as military expenditure, corruption index as a proxy for institutional quality and growth rate as measure of Nigerian economic growth are included in the model. Other variables used as control are investment, population and macroeconomic variables such as exchange rate and inflation rate. Auto-Regressive Distributed Lag (ARDL) approach is applied and the result shows that there exists a long run relationship between military expenditure, institutional quality and Nigerian economic growth. The result further shows that there exists a positive and significant relationship between military expenditure and Nigerian economic growth but institutional quality in Nigeria was found to have significant negative impact on economic growth while the interaction between military expenditure and institutional quality also indicates a significant negative impact on Nigerian economic growth. It is recommended that military expenditure in Nigeria should be moderately reduced and institutions in Nigeria should monitor its disbursement to ensure that it is spent on what is actually meant for.
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