The nexus between military expenditures and economic growth in the BRICS and the US: an empirical note |
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| Authors: | Ming Zhong Samrat Goswami Rangan Gupta Tien-Wei Lou |
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| Institution: | 1. Department of Insurance, Shanghai University of Finance and Economics, China;2. Department of Economics, Tripura University, India;3. Department of Economics, University of Pretoria, South Africa;4. Department of Finance, Chinese Culture University, Taiwan |
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| Abstract: | This empirical note re-examines the causal linkages between military expenditures and economic growth for the BRICS countries (Brazil, Russia, India, China, and South Africa) and that for the USA during the period 1988–2012. Results of Granger causality tests show that military expenditures influence economic growth in the USA, economic growth influences military expenditures in both Brazil and India, a feedback between military expenditures and economic growth in Russia, and no causal relation exists between military expenditures and economic growth in China and South Africa. The findings of this study can provide important policy implications for the BRICS countries and also for the USA. |
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| Keywords: | Military expenditures Economic growth Bootstrap panel granger causality test BRICS countries |
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