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<p>A number of studies have contributed to the debate on the relationship between military spending and income inequality. However, little attention has been paid to the role of social spending and corruption in this relationship. Therefore, this study aims to examine the relationship between military spending and income inequality, taking into account the mediating role of public spending on education and corruption. Applying the Least Squares Dummy Variable Corrected (LSDVC) of Kiviet (J Econ 218(2):294–316, 2020) and Driscoll-Kraay methods on a panel of 16 African countries covering 2002–2019 period, results suggest that military spending increases income inequality. The transmission mechanism results, obtained using the Sobel-Goodman method (SGM), indicate that public spending on education and corruption partially mediate the relationship between military spending and income inequality. Based on the study’s findings, relevant policy implications for African countries seeking to reduce income inequality are discussed.</p>

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Military spending and income inequality in Africa: effects and transmission channels

  • 期刊论文

  • 发表日期：

    2026年3月25日

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  • Idrys Fransmel Okombi,
  • Fernand Owonda,
  • Michel Okiemy

摘要

A number of studies have contributed to the debate on the relationship between military spending and income inequality. However, little attention has been paid to the role of social spending and corruption in this relationship. Therefore, this study aims to examine the relationship between military spending and income inequality, taking into account the mediating role of public spending on education and corruption. Applying the Least Squares Dummy Variable Corrected (LSDVC) of Kiviet (J Econ 218(2):294–316, 2020) and Driscoll-Kraay methods on a panel of 16 African countries covering 2002–2019 period, results suggest that military spending increases income inequality. The transmission mechanism results, obtained using the Sobel-Goodman method (SGM), indicate that public spending on education and corruption partially mediate the relationship between military spending and income inequality. Based on the study’s findings, relevant policy implications for African countries seeking to reduce income inequality are discussed.