Interdependence between US and European Military Spending: A Panel Cointegration Analysis (1988-2013)

9 Pages Posted: 24 May 2015

See all articles by Raul Caruso

Raul Caruso

Catholic University of the Sacred Heart of Milan

Marco Di Domizio

University of Teramo

Date Written: May 23, 2015

Abstract

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.

Keywords: Military Spending, interdependence, Panel Cointegration, Fully Modified OLS, Dynamic OLS

JEL Classification: H56; H63; F52

Suggested Citation

Caruso, Raul and Di Domizio, Marco, Interdependence between US and European Military Spending: A Panel Cointegration Analysis (1988-2013) (May 23, 2015). Available at SSRN: https://ssrn.com/abstract=2609735 or http://dx.doi.org/10.2139/ssrn.2609735

Raul Caruso (Contact Author)

Catholic University of the Sacred Heart of Milan ( email )

20123 Milano
Italy

Marco Di Domizio

University of Teramo ( email )

Campus Coste S. Agostino
Via R. Balzarini 1, Località Colleparco
Teramo, TE 64100
Italy
0390861266783 (Phone)

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
29
Abstract Views
256
PlumX Metrics