Document Details

Document Type : Thesis 
Document Title :
Military Expenditure and Economic Growth in GCC: A Comparative study
الإنفاق العسكري والنمو الاقتصادي في دول مجلس التعاون الخليجي: دراسة مقارنة
 
Subject : Faculty of Economics and Administration 
Document Language : Arabic 
Abstract : This study contributes to the continuing debate on the economic effects of military expenditure (ME) on the economic growth for GCC countries (Saudi Arabia, Oman, Bahrain, Qatar, Kuwait and United Arab Emirates) during 1988-2015 based on data availability for each country by using comparative analysis methods and Deger type demand-supply side model for 2SLS and 3SLS simultaneous equation method. The comparative analysis result indicates that the GCC countries have seen sharp fluctuations and increase coefficient of variation and that’s may due to increasing the level of threats or the impact of the oil price. Saudi Arabia was the largest military spender and followed by UAE while Bahrain less spender. The result showed that ME trend increasing for all GCC countries except Kuwait and Qatar if we eliminate (Gulf War) effect. Resource and budgets allocation patterns shown that the GCC countries allocate large size to ME. The empirical result for Deger model shown the direct effect of ME on economic growth was positive and significant for Saudi Arabia and Oman but negative and significant for Bahrain and the rest of GCC countries was negative but insignificant. The crowding out effect for ME on saving was negative and significant for Saudi Arabia and Bahrain but positive and significant for Kuwait and the rest countries was negative but insignificant. The effect of ME on Trade balance was negative for all countries but insignificant except Bahrain was significant on 10% may due to the GCC countries did not receive foreign military aid. The multipliers result shown the net effect of ME on growth (DG/DM) was negative for Kuwait, Qatar and Oman but positive for Saudi Arabia, Bahrain and UAE. The net effect of ME on Saving (DS/DM) and net effect of ME on Trade balance (DTB/DM) was negative at all. The study concludes that the relationship of the impact of military expenditure on economic growth cannot be generalized across countries. Due to the convergence of economic, social conditions and the size of threats for GCC countries, recommendation to have further alignment and collaboration in military expenditure is important to enhance the security and stability in the region and achieve development. 
Supervisor : Dr. Ahmed Ahmed Khalil 
Thesis Type : Master Thesis 
Publishing Year : 1438 AH
2017 AD 
Added Date : Sunday, June 11, 2017 

Researchers

Researcher Name (Arabic)Researcher Name (English)Researcher TypeDr GradeEmail
عبد الله علي مريرMarir, Abdullah AliResearcherMaster 

Files

File NameTypeDescription
 40879.pdf pdf 

Back To Researches Page