Asymmetric effects of militarization on economic growth and environmental degradation: fresh evidence from Pakistan and
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RESEARCH ARTICLE
Asymmetric effects of militarization on economic growth and environmental degradation: fresh evidence from Pakistan and India Sana Ullah 1
&
Zubaria Andlib 2 & Muhammad Tariq Majeed 1 & Sidra Sohail 3 & Muhammad Zubair Chishti 1
Received: 10 July 2020 / Accepted: 5 October 2020 # Springer-Verlag GmbH Germany, part of Springer Nature 2020
Abstract To examine the asymmetric effects of militarization on economic growth and environmental degradation, this empirical research analyzes annual data of Pakistan and India over the period 1985–2018 using the NARDL econometric model. The empirical results show significant positive militarization effects on economic growth, while non-militarization also shows positive effects on the economic growth in Pakistan and India. Estimation showed that a 1% increase in militarization (non-militarization) led to 8.818% (3.849%) increase in GDP growth, whereas a 1% increase in militarization (non-militarization) decreased carbon emissions by − 1.034% (− 0.225%) in the long run in Pakistan, while militarization has also decreased the carbon emissions − 0.337% in India in the long run. The relationship between militarization and economic growth has an asymmetry in Pakistan and India in the short and long run, while asymmetry also exists between militarization and CO2 in Pakistan and India in the short and long run. Our findings offer significant policy implications for promoting economic growth and environmental quality in Pakistan and India. Keywords Militarization . Economic growth . Environmental degradation . NARDL . Pakistan . India
Introduction In the recent past, it has become an interesting debate to explore the different themes related to climate change and global Responsible Editor: Nicholas Apergis * Sana Ullah [email protected] Zubaria Andlib [email protected] Muhammad Tariq Majeed [email protected] Sidra Sohail [email protected] Muhammad Zubair Chishti [email protected] 1
School of Economics, Quaid-i-Azam University, Islamabad, Pakistan
2
Federal Urdu University, Islamabad, Pakistan
3
Pakistan Institute of Development Economics (PIDE), Islamabad, Pakistan
warming. The main reason behind the recent wave of climate change is an increase in greenhouse gas emissions (GHG). There are so many detrimental factors of increasing GHG emissions at the global, regional, and country-level; the two most important of them are militarization and economic growth. Particularly, the use of nonrenewable energy in industrial as well as defense production is one of the most prominent factors behind the GHG emissions. Due to internal and external security-related threats, countries are spending more on their production and manufacturing of military equipment. According to the latest available report of Stockholm International Peace Research Institute (2019), the estimated global spending on militarization is $1917 billion in 2019, which accounts for 2.2% of the global GDP for the same year. The radical changes in military spending throughout the world giv
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