Impacts of military expenditure and corruption on inclusive growth of emerging countries

In this study, the authors contribute to the existing literature by examining the impacts of military expenditure and corruption on inclusive growth in emerging countries. The focus is on Brazil, Russia, India, China, and South Africa (BRICS) countries as a case study covering the period 1960 to 2018. The study uses using Autoregressive Distributed Lag (ARDL) estimation technique subdivided under two distinct phrases of Cold war and post-Cold war eras. Data used in this study are yearly data, covering 1960 – 2018 period and further subdivided into cold war and Post war era. Using ARDL, the results indicate military expenditure has negative effect on inclusive growth during cold war period. Even during the post-cold war period, which represents a phrase of low external threats to BRICS countries, military expenditure is found to have a negative impact on inclusive growth, and the result is statistically insignificant. The study contributes to the understanding of influence of Inclusive growth on military expenditure for emerging and developed bloc economies like BRICS. This study innovates by using ARDL to find out the impact of military expenditure in attaining an apex inclusive growth in developing economies like BRICS countries.