Analyzing the linkage between military spending, economic growth, and ecological footprint in Pakistan: evidence from cointegration and bootstrap causality
2020
Ahmed, Zahoor | Zafar, Muhammad Wasif | Mansoor, Sadia
The ecological consequences of military spending is a hugely neglected area, and a veil of mystery surrounds this topic. The environmental threats posed by militaries remain insufficiently investigated in the name of national security. Prompted by the internal and external conflicts and prolonged military dictatorships, the Pakistani military assumes a role that goes beyond that of a traditional army. The current study addresses this significant gap in the literature by investigating the impacts of military spending on economic growth and the ecological footprint in Pakistan from 1971 to 2016 using the combined cointegration test and the bootstrap causality test. The findings of the study unveil a positive impact of military spending on the ecological footprint, while a negative impact on economic growth. The outcomes of the bootstrap causality test of Hacker and Hatemi-J (2012) highlight that economic growth Granger causes military spending, while causality runs from military spending to the ecological footprint. Energy consumption contributes to the ecological footprint and economic growth, whereas education expenditures do not influence economic growth and the environment in the long run. Further, the findings suggest a U-shaped link between GDP and footprint in Pakistan. The authorities should focus on resolving external and internal conflicts, on a priority basis, and reduce military spending to improve economic growth and the environment.
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