Abstract
Considerable analysis has focused on the causal relationship between military expenditure and economic growth in literature. However, the causality relationship to industrialisation is yet to be investigated. Therefore, this study contributes in filling this gap. With a balanced panel of 35 African countries spanning 1990 to 2015, this study investigates the causal relationship among military expenditure, industrialisation, and economic growth. We employed Panel Vector Error Correction Model (PVECM) causality test. The findings suggest a long-run equilibrium relationship among our variables from the panel cointegration test. At both Africa and regional economic levels, the PVECM causality test suggests that industrialisation and growth causes military expenditure in the short-run and long-run. This implies that African governments fund military expenditure/activities largely by taxing production. Therefore, our results suggest that military spending can be used to achieve industrialisation and economic growth aimed at both the African continental level and at regional economic Africa communities.