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as .terms absolute in impressive look not may Africa in rates growth The —stereotype old the but .base economic small a have countries African most .inaccurate hopelessly now is—backwater military a as Africa Of recently, six of the world’s top ten military spenders are now located in the Middle East and North Africa, all of the Gulf states have tripled their spending since 2003, and Algeria’s military budget has grown by 174% in the same time frame, making it Africa’s biggest spender, the oil trade provides much of the cash for this arming-up. the motivation comes from the threat of insurgency, and the desire of some authoritarian governments to secure their grip on power, meanwhile, some studies found that cutting military expenditure promotes economic growth and reduces the likelihood of conflict at both domestic and international levels, once a threat perception is in place, however, decision-makers prefer guns over butter The study employs granger - causality tests using annual time series data for the two variables (economic growth and military spending). The paper concludes that there is uni-direction causality from real GDP to military spending as a percentage of GDP, as well as uni-direction causality from governmental expenditure to military spending, and per capita income, this means that an increase of governmental expenditure would induce more per capita income and military spending.
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