Author(s): Metin DUYAR, Mustafa KOÇOLU

African continent has significant importance for showing the inter-relation for that of military expenditure , war and underdevelopment all which demonstrate the relative data that poverty is created by divertion of economic sources to wars and domestic conflicts.

When analizing the existing studies, it shows that military expenditure does not stimulate positive effect on the economy of subject group of countries. Diverting the economic sources which are already scarse, to military expenditures and not giving priorities to polical measures and strategies that help to achieve economic and social development caused the African countries to become underdeveloped socially and economicaly compared to rest of the world.

Effect of Military expenditures on economic growth has been analyzed by using an exogenous economic growth model and panel data GLS method using data of 6 Sub-Saharan countries for 1990-2012 period. The result of analysis showed that military expenditures has so limited and minimal positive effect on economic growth which cannot be taken into consideration by macro economic means.

Despite the fact that the result is positive; by amount and value wise it is not enough to set any political goal and to develope any strategy for the subject countries. It is not mistaken to say the short and long term effects on the whole economy will be much more beneficial if those expenditure is made to other sectors in subject countries.


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