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Nexus between defense expenditure and economic growth in BRIC economies: An empirical investigation

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  • Dash, Devi Prasad
  • Bal, Debi Prasad
  • Sahoo, Manoranjan

Abstract

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 variables. 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.

Suggested Citation

  • Dash, Devi Prasad & Bal, Debi Prasad & Sahoo, Manoranjan, 2016. "Nexus between defense expenditure and economic growth in BRIC economies: An empirical investigation," MPRA Paper 77014, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:77014
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    More about this item

    Keywords

    Defense Expenditure; BRIC; Panel cointegration;
    All these keywords.

    JEL classification:

    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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