Impact of Military Spending on Economic Growth In Jordan during 1999 – 2020

Abstract

The study aimed to measure the impact of military spending on economic growth in Jordan during 1999-2020. ARDL methodology to estimate short and long-term relationships and Granger causality analysis. The study concluded that military and education spending negatively affect economic growth in the short and long run. The cointegration between the variables in the long term proved. The study concluded that military spending would discourage allocating of scared resources toward more productive fields and purposes. The vital result says that increased spending on education is another way to lose scarce economic resources and a decreasing purchasing power of Jordanians than spending on the Military. The study presents many recommendations, notably the need to reduce military spending and allocate resources toward the most productive industries in the economy.