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Defence expenditure and economic growth in Latin American countries: evidence from linear and nonlinear causality tests

Author

Listed:
  • Christos Kollias

    (University of Thessaly)

  • Suzanna-Maria Paleologou

    (Aristotle Univesrity of Thessaloniki)

  • Panayiotis Tzeremes

    (University of Thessaly)

  • Nickolaos Tzeremes

    (University of Thessaly)

Abstract

Using SIPRI’s new consistent database on military expenditures, the paper examines the economic effects of such spending in the case of the 13 Latin American countries. Employing both linear and nonlinear tests, the nexus between defence spending, economic growth, and investment is investigated for the period 1961–2014. Findings reported herein are not uniformed across all countries included in the sample. However, as a broad tentative generalization, they seem to be pointing to the absence of a strong and robust nexus between the variables examined.

Suggested Citation

  • Christos Kollias & Suzanna-Maria Paleologou & Panayiotis Tzeremes & Nickolaos Tzeremes, 2017. "Defence expenditure and economic growth in Latin American countries: evidence from linear and nonlinear causality tests," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 26(1), pages 1-25, December.
    • Handle: RePEc:spr:laecrv:v:26:y:2017:i:1:d:10.1007_s40503-017-0039-4
    DOI: 10.1007/s40503-017-0039-4
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    3. Leonel Muinelo-Gallo & Ronald Miranda, 2020. "The Behaviour of Social Transfers over the Business Cycle: Empirical Evidence of Uruguay," Hacienda Pública Española / Review of Public Economics, IEF, vol. 233(2), pages 25-54, June.
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    5. Riveros Gavilanes, John Michael, 2020. "Military Expenditure and Economic Growth: The South American Case," MPRA Paper 98508, University Library of Munich, Germany.
    6. Caruso Raul & Antonella Biscione, 2022. "Militarization and Income Inequality in European Countries (2000–2017)," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 28(3), pages 267-285, September.
    7. Kyriakos Emmanouilidis & Christos Karpetis, 2020. "The Defense–Growth Nexus: A Review of Time Series Methods and Empirical Results," Defence and Peace Economics, Taylor & Francis Journals, vol. 31(1), pages 86-104, January.
    8. Liu Geng & Olivier Joseph Abban & Yao Hongxing & Charles Ofori & Joana Cobbinah & Sarah Akosua Ampong & Muhammad Akhtar, 2024. "Do military expenditures impede economic growth in 48 Islamic countries? A panel data analysis with novel approaches," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(7), pages 18725-18759, July.
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    12. Christos Kollias & Suzanna Maria Paleologou & Panayiotis Tzeremes & Nickolaos Tzeremes, 2018. "The demand for military spending in Latin American countries," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 27(1), pages 1-17, December.
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    More about this item

    Keywords

    Latin America; Military spending; Growth; Causality;
    All these keywords.

    JEL classification:

    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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