Military Spending and Economic Activity in South Korea
- 주제어 (키워드) Military Spending , Non-military Spending , GDP , VAR
- 발행기관 서강대학교 경제대학원
- 지도교수 김윤정
- 발행년도 2024
- 학위수여년월 2024. 2
- 학위명 석사
- 학과 및 전공 경제대학원 국제경제
- 실제URI http://www.dcollection.net/handler/sogang/000000076631
- UCI I804:11029-000000076631
- 본문언어 영어
- 저작권 서강대학교 논문은 저작권 보호를 받습니다.
초록
The economic effects of military spending on growth in South Korea are a concern since maintaining a balance between military spending and the nation's security policy is crucial given special circumstances with North Korea. In this study, I examined the impact of military spending on economic growth in South Korea applying Vector Autoregressive model. Results suggest that: i) military spending has smaller impact on GDP growth than non-military spending, and ii) any increase of military spending and non-military spending generally align with traditional economic theories of a crowding-out effect and a negative impact on the current account balance. These findings suggest that, despite maintaining a relatively healthy economic growth, a greater rate of growth could have been achieved had the government afforded non-military spending a higher priority and that the expansion of military budgets in South Korea is expected to impede the country's economic growth performance.
more목차
1. INTRODUCTION 2
2. LITERATURE REVIEW 4
3. DATA AND METHODOLOGY 6
3.1 Data Description 6
3.2 Stationarity 7
3.3 Granger Causality Test 8
3.4 VAR Specification 8
3.5 Impulse Response Function and Variance Decomposition 9
3.6 Analysis with Indirectly Linked Variables 11
4. CONCLUSION 15
Data Appendix 16
References 17
