Revisiting Military Expenditure and Economic Growth Nexus in Nigeria: A Wavelet Approach

Abstract

This study examined the relationship between defence expenditure and economic growth in Nigeria. The ARDL model and wavelet coherence test were applied using time series data covering 1960 to 2018, obtained from the World Bank. Military expenditure has a negative short-run impact on economic growth. Arms import and the military regime increased economic growth rate in the short run but the growth rate declined in the long run. Wavelet Coherence result shows that military expenditure leads economic growth, in other words, the growth impact of military expenditure is temporal. The benefits of increased military expenditure are in the long run not the short run. The military regime has a negative long-run impact on the economic growth rate. The role of the military in governance should be minimized. Military should concert effort in national defense and not governance.