| Summary: | The aim of the thesis is to examine and estimate the effects of military expenditure, institutions and conflict on economic development. The military expenditure and economic growth nexus is re-analysed in the context of threat and security dimensions. In particular the proposed empirical model is a non-linear one that is characterised by the external and internal threat levels. The findings are that when the internal and external threat levels are below threshold values, a rise in military expenditure results in a fall in growth. Conversely, when the external and internal threat levels are higher than threshold values, a rise in military expenditure results in a rise in growth.
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