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Defence Spending and Growth in Cyprus: A Causal Analysis

Author

Listed:
  • Christos Kollias
  • Charis Naxakisb
  • Leonidas Zarangasb

Abstract

The causal relationship between economic growth and defence spending has attracted considerable attention and has been the subject of many empirical studies. Hoping to contribute to the existing pool of literature, this paper examines the relationship between military expenditure and growth in the case of Cyprus, a small island economy, for the period 1964-99. The findings reported suggest the presence of bi-directional instantaneous causality between defence spending and economic growth.

Suggested Citation

  • Christos Kollias & Charis Naxakisb & Leonidas Zarangasb, 2004. "Defence Spending and Growth in Cyprus: A Causal Analysis," Defence and Peace Economics, Taylor & Francis Journals, vol. 15(3), pages 299-307.
    • Handle: RePEc:taf:defpea:v:15:y:2004:i:3:p:299-307
    DOI: 10.1080/1024269032000166864
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    References listed on IDEAS

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    More about this item

    Keywords

    Cyprus; Military expenditure; Causality; Cointegration; Economic growth; Structural breaks; JEL Code: H56;
    All these keywords.

    JEL classification:

    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War

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