Nexus between defense expenditure and economic growth in BRIC economies: An empirical investigation
This paper considers the defense expenditure and economic growth nexus based on the cross-border problems and increasing geo-political presence for BRIC blocs over the period 1993-2014. Our approach is more methodological in terms of employing Panel cointegration and causality to highlight the funda...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
General Association of Economists from Romania
2016-03-01
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| Series: | Theoretical and Applied Economics |
| Subjects: | |
| Online Access: |
http://store.ectap.ro/articole/1162.pdf
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| Summary: | This paper considers the defense expenditure and economic growth nexus based
on the cross-border problems and increasing geo-political presence for BRIC blocs over
the period 1993-2014. Our approach is more methodological in terms of employing Panel
cointegration and causality to highlight the fundamental relation between the defense
expenditure and economic growth. Here we emphasize various economic considerations in
terms of pre and post war, strategic and spatial phenomenon to capture the magnitude of
gains from the increased defense spending in the region. We are using panel unit-root;
panel cointegration and panel-Granger causality to highlight the fundamental relationship
between the variables. We conclude by discussing the issues as well as quantifying the
consequences of present geostrategic conditions associated with these economies. |
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| ISSN: | 1841-8678 1844-0029 |