Economic ımpacts of military expenditures: A comparative analysis on superpowers of the world

Abstract

Dunne and Nikolaidou (2005) pointed out the importance of relatively homogenous countries in sampling on economic impacts of military spending. In this regard, our paper aims at investigating long-run causal relationship between military expenditures and economic growth among the superpower countries of the world using ARDL approach and Toda Yamamoto technique over the period 1973-2011. The most remarkable findings of the paper are the one group of countries composed of 7 members of G8 and the general tendency in the split of causality which can be described as developed and developing countries.