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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:Is the Tradeoff between Defense Spending and Social Welfare an Illusion? Some Evidence from Tropical Africa
Author:Gyimah-Brempong, KwambenaISNI
Year:1989
Periodical:Eastern Africa Economic Review
Volume:5
Issue:2
Period:December
Pages:74-90
Language:English
Notes:biblio. refs., ills.
Geographic terms:Subsaharan Africa
Africa
Subjects:public expenditure
defence
social policy
Economics and Trade
Military, Defense and Arms
Economics, Commerce
social welfare
Military expenditure
economic development
Abstract:This paper employs a utility maximization two-stage budgeting framework and a simultaneous equation model to investigate budgetary trade-offs between defence and social welfare programmes in sub-Saharan Africa from 1973 to 1983. Using a W3SLS estimation procedure and cross-national time series data, the author finds a significant trade-off between defence and social services in budgetary allocation, with changes in defence budget share having a negative effect on the budget share of social services, while the reverse is not true. The author also finds that the pattern of budgetary allocation is influenced by external aid; external aid tends to increase defence budget share. Moreover, the oil-exporting African countries tend to spend a larger share of their budgets on defence than their non-oil-exporting counterparts. Finally, the occurrence of military coups increases the budget share of defence in tropical African countries. Bibliogr., notes, ref.
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