The Nexus between Military Spending and Economic Growth in Newly Industrialized Countries: Panel Evidence from CrossSectional Dependency

Authors

  • Mehmet Akif DESTEK Gaziantep University

Keywords:

Military spending; Economic growth; Panel data; Dependency; Newly Industrialized Countries.

Abstract

In this study, the long term relationship between military spending and economic growth in newly industrialized countries is analyzed with panel data methods for the years of 1988-2013. The study, where panel unit root, panel co-integration, panel co-integration estimator and panel causality tests that allow cross-sectional dependence are used, shows that the feedback hypothesis is valid in newly industrialized countries. And when these countries are analyzed separately, it is seen that the growth hypothesis is valid for India, Malaysia, Mexico and South Africa; the neutrality hypothesis is valid for China, Indonesia, Philippines, Thailand and Turkey and the growth detriment hypothesis is valid for Brazil.

Published

31-05-2016

How to Cite

DESTEK, M. A. (2016). The Nexus between Military Spending and Economic Growth in Newly Industrialized Countries: Panel Evidence from CrossSectional Dependency. Eurasian Journal of Business and Economics, 9(17), 37-50. Retrieved from https://www.ejbe.org/index.php/EJBE/article/view/161

Issue

Section

Articles