EXPLORING THE LONG RUN EFFECTS AND RELATIONSHIP OF MILITARY EXPENDITURES AND ECONOMIC GROWTH IN THE SCENARIO OF PAKISTAN

Abstract

The principal attributes of this study were to examine the effect of military expenditures on economic expansion in the long run from the perspective of Pakistan. We took the yearly data from the year 1961 to 2018 and used A R D L estimation technique for empirical results. Through our results, we can confirm the existence of a connection between military spending and economic expansion of Pakistan in the long run. Additionally, over the long term, a positive outcome of military expenditures is observed upon the financial development of Pakistan. Hostile India and Kashmir issue are the principal reason behind a large-scale military expenditure of Pakistan. Solving this dispute and improving bilateral relations can help to reduce the extensive military budget and to attain efficient resource allocation for both countries.