ASSESSING THE ECONOMIC EFFECTS OF MILITARIZATION ON URBANIZATION IN ASEAN 5

Abstract

The disruption caused by conflicts can lead to population displacements, altering the demographic composition of cities and resulting in uneven urban growth. Understanding these consequences is pivotal, given their significant impact on the course of urbanization and overall economic development in the ASEAN 5 countries. This study delves into the relationship between military operations and urbanization in these nations through the Treadmill of Destruction Theory, analyzing how military activities interact with economic development. Employing an Autoregressive Distributed Lag (ARDL) model, the study underscores the substantial economic influence of military operations on urbanization dynamics. Economically, military operations can profoundly shape urbanization in the ASEAN 5 countries. Military bases and defense industries serve as crucial economic drivers, offering employment opportunities, stimulating local businesses, and attracting investment. However, overreliance on military spending for economic growth may lead to dependencies and distortions in resource allocation, potentially impeding diversification and innovation in urban economies. These findings contribute a deeper understanding of the economic ramifications of militarization in Southeast Asia.