IMPACT OF MILITARY EXPENDITURE ON ECONOMIC GROWTH IN NIGERIA

Abstract

This paper examines the impact of military expenditure on economic growth in Nigeria. Time series data spanning from1985 to 2020 is used. Both the dependent and independent variables were obtained from World development indicator data 2020. The study uses Auto Regressive Distributed Lag (ARDL) approach. The data for the study is analyzed using E-view 9.0. The bound test approach results show that military expenditure was significant in influencing GDP by 92% in the short-run, while in the long-run it has a negative impact (-1.3%). Arms import and money supply had both negative impacts in influencing economic growth of Nigeria. However, exchange rate figures had negative impact in the short-run, but in the long-run it was found to be positive but insignificant on economic growth of Nigeria. The finding generally suggests the synchronization of military sector and their finances through checks and balances.