Panel Causality Analysis Between Defence Expenditure and Economic Growth in Developed Countries

Autor:	Metehan Yilgör, Çiğdem Ateş Saygili, Erdal Tanas Karagöl
Rok vydání:	2012
Předmět:	Macroeconomics Economics and Econometrics Cointegration Granger causality Economics International economics Unit root Causality Developed country Social Sciences (miscellaneous)
Zdroj:	Defence and Peace Economics. 25:193-203
ISSN:	1476-8267 1024-2694
DOI:	10.1080/10242694.2012.724879
Popis:	There is much controversy in the literature over whether military expenditures have a positive, negative or no relation impact on economic growth. The aim of this paper is to determine the relationship between GDP and defence expenditure. The study analyses GDP and defence expenditures of the developed countries with cross-sectional ADF and SURADF unit root tests using annual data for the years 1980–2007. We conclude that in the long term, according to the Pedroni cointegration test, there exists a relationship between defence expenditure and economic growth. Furthermore, by utilizing the Granger causality test, we find that defence expenditure is a factor in economic growth. In other words, our study validates the hypothesis that defence spending by economically developed countries positively contributes to their economics.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::b28384e1a0cf49f15181d2fd40da6c00 https://doi.org/10.1080/10242694.2012.724879 Zobrazit plný text záznamu