The aim of this paper is to study the interdependence of military spending between US and a panel of European countries in the period 1988-2013. The empirical estimation is based on a: (i) a unit root tests and a cointegration analysis; (ii) FMOLS and DOLS estimations. General results highlight that military spending of European countries is: (1) positively associated with US military spending and (2) negatively associated with average military spending of other European countries.
|Rivista||Applied Economics Letters|
|Stato di pubblicazione||Pubblicato - 2015|
- Dynamic OLS
- Fully Modified OLS
- military spending
- panel cointegration