DOES MILITARY EXPENDITURE INFLUENCE ECONOMIC GROWTH IN DEVELOPING COUNTRIES? A CO – INTEGRATION ANALYSIS
Keywords:
Military expenditure, Economic growth, Unit root, Cointegration, Exogeneity test, Panel data analysisAbstract
This study is an attempt to reexamine the causal ordering between the two variables in the developing countries. The study investigates unit root, cointegration and exogeneity tests between military expenditure and economic growth in 14 developing countries for the period 1981-2006 considering panel data analysis. Results reported herein suggest that military expenditure is an exogenous variable and this variable influences economic growth in these countries.
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