IDEAS home Printed from https://ideas.repec.org/a/vrs/ecothe/v59y2021i3p375-390n6.html
   My bibliography  Save this article

Panel Cointegration Analysis of Military Expenditure and Economic Growth in the Selected Balkan Countries

Author

Listed:
  • Kalaš Branimir

    (University of Novi Sad, Faculty of Economics in Subotica, Serbia)

  • Mirović Vera

    (University of Novi Sad, Faculty of Economics in Subotica, Serbia)

  • Milenković Nada

    (University of Novi Sad, Faculty of Economics in Subotica, Serbia)

Abstract

The issue of security and safety i s a fundamental condition for stable economic trends. Military expenditure can be a very powerful tool for a rapid economic growth. The paper examines the long-run relationship between military expenditure and economic growth in the selected Balkan countries, such as Albania, Bosnia and Herzegovina, Croatia, Montenegro, North Macedonia, Serbia and Slovenia for the period 2004-2018. The analysis implies a panel unit root test, a panel cointegration test, as well as a panel Granger causality test. The results have identified a long-run relationship between military expenditure and economic growth in the Balkan countries based on panel data analysis. Also, empirical findings have confirmed that shock experience in one of the countries’ military expenditure and economic growth have effect on other countries. Finally, the results have determined unidirectional causality from military expenditure to economic growth in these countries and not vice versa.

Suggested Citation

  • Kalaš Branimir & Mirović Vera & Milenković Nada, 2021. "Panel Cointegration Analysis of Military Expenditure and Economic Growth in the Selected Balkan Countries," Economic Themes, Sciendo, vol. 59(3), pages 375-390, September.
    • Handle: RePEc:vrs:ecothe:v:59:y:2021:i:3:p:375-390:n:6
    DOI: 10.2478/ethemes-2021-0021
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/ethemes-2021-0021
    Download Restriction: no
    File URL: https://libkey.io/10.2478/ethemes-2021-0021?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    military expenditure; economic growth; Balkan countries; panel cointegration analysis;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:ecothe:v:59:y:2021:i:3:p:375-390:n:6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.