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The nexus between military expenditures and economic growth in the BRICS and the US: an empirical note

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  • Ming Zhong
  • Tsangyao Chang
  • Samrat Goswami
  • Rangan Gupta
  • Tien-Wei Lou

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.

Suggested Citation

  • Ming Zhong & Tsangyao Chang & Samrat Goswami & Rangan Gupta & Tien-Wei Lou, 2017. "The nexus between military expenditures and economic growth in the BRICS and the US: an empirical note," Defence and Peace Economics, Taylor & Francis Journals, vol. 28(5), pages 609-620, September.
    • Handle: RePEc:taf:defpea:v:28:y:2017:i:5:p:609-620
    DOI: 10.1080/10242694.2016.1144897
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    References listed on IDEAS

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    2. 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.
    3. 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.
    4. Feng-Li Lin & Mei-Chih Wang, 2019. "Does economic growth cause military expenditure to go up? Using MF-VAR model," Quality & Quantity: International Journal of Methodology, Springer, vol. 53(6), pages 3097-3117, November.

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