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Effects of corruption on military expenditures: Empirical evidence from different income level countries

Imtiaz Arif (Department of Business Administration, Iqra University, Karachi, Pakistan)
Lubna Khan (Department of Business Administration, Iqra University, Karachi, Pakistan)
Syed Ali Raza (Department of Business Administration, Iqra University, Karachi, Pakistan)

Journal of Financial Crime

ISSN: 1359-0790

Article publication date: 2 July 2019

Abstract

Purpose

This study aims to investigate the effect of corruption on military expenditures in three income level countries. An annual data series of 97 countries covering high-income, middle-income, and low-income regions from 1997 to 2015 is used.

Design/methodology/approach

The cross-sectional dependency and integration property of the data series was checked before applying the generalized method of moments approach to test the model.

Findings

The results of the system generalized method of moments approach suggest that corruption increases the military budget of high-income countries, whereas corruption reduces the military budget of the middle- and low-income countries.

Originality/value

This paper offers some substantial implications for the policymakers of each income group to curb corruption and improve economic development.

Keywords

Citation

Arif, I., Khan, L. and Raza, S.A. (2019), "Effects of corruption on military expenditures: Empirical evidence from different income level countries", Journal of Financial Crime, Vol. 26 No. 3, pp. 774-785. https://doi.org/10.1108/JFC-09-2018-0092

Publisher

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Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited