Defense–Growth Causality: Considerations of Regime-Switching and Time- and Country-Varying Effects

References

• Acemoglu, D. and J. Robinson. 2012. Why nations fail: the origins of power, prosperity, and poverty. New York: Crown Business.
   Google Scholar
• Ali, F. M., and O. Dimitraki. 2014. “Military Spending and Economic Growth in China: A Regime-Switching Analysis.” Applied Economics 46 (28): 3408–3420.
   Web of Science ®Google Scholar
• Alkire, S. 2002. Valuing Freedoms: Sen’s Capabilities Approach and Poverty Reduction. Oxford: Oxford University Press.10.1093/0199245797.001.0001
   Google Scholar
• Anand, S., and A. Sen. 2000. “The Income Component of the Human Development Index.” Journal of Human Development 1 (1): 83–106.10.1080/14649880050008782
   Google Scholar
• Asteriou, D., and S. G. Hall. 2007. Applied Econometrics: A Modern Approach. New York: Palgrave Macmillan.
   Google Scholar
• Awad, F., I. Yussof, R. Ismail, and T. Sarmidi. 2014. “Economic Growth and Human Development – What Do Time Series Data Say for Sudan?” Middle East Development Journal 6 (2): 151–174.10.1080/17938120.2014.961329
   Google Scholar
• Aye, G. C., M. Balcilar, J. P. Dunne, R. Gupta, and R. van Eyden. 2014. “Military Expenditure, Economic Growth and Structural Instability: A Case Study of South Africa.” Defence and Peace Economics 25 (6): 619–633.10.1080/10242694.2014.886432
   Web of Science ®Google Scholar
• Barro, R. J., and X. Sala-i-Martin. 1995. Economic Growth. Cambridge, MA: MIT Press.
   Google Scholar
• Benoit, E. 1973. Defense and economic growth in developing countries. Lexington, MA: Lexington Books.
   Google Scholar
• Brauer, J. 1996. “Military Expenditures and Human Development Measures.” Public Budgeting and Financial Management 8 (1): 106–124.
   Google Scholar
• Chang, T., W. Fang, L.-F. Wen, and C. Liu. 2001. “Defence Spending, Economic Growth and Temporal Causality: Evidence from Taiwan and Mainland China, 1952–1995.” Applied Economics 33 (10): 1289–1299.10.1080/00036840122529
   Web of Science ®Google Scholar
• Chang, T., C.-C. Lee, and H.-P. Chu. 2015. “Revisiting the Defense – Growth Nexus in European Countries.” Defence and Peace Economics 26 (3): 341–356.10.1080/10242694.2013.832556
   Web of Science ®Google Scholar
• Chen, S. T., and C. C. Lee. 2005. “Government Size and Economic Growth in Taiwan: A Threshold Regression Approach.” Journal of Policy Modeling 27 (9): 1051–1066.10.1016/j.jpolmod.2005.06.006
   Web of Science ®Google Scholar
• Chodak, G., and K. Kowal. 2011. “Degree of Economic Freedom and Relationship to Economic Growth and Human Development.” Published in Hradecke Ekonomicke Dny. Ekonomicky Rust a Rozvoj Regionu. Vedecka Konference 2: 104–112.
   Google Scholar
• Cuaresma, J. C., and G. Reitschuler. 2004. “A Non‐Linear Defence‐Growth Nexus? Evidence from the US Economy.” Defence and Peace Economics 15 (1): 71–82.10.1080/1024269042000164504
   Web of Science ®Google Scholar
• Dakurah, A. H., S. P. Davies, and R. K. Sampath. 2001. “Defense Spending and Economic Growth in Developing Countries: A Causality Analysis.” Journal of Policy Modeling 23 (6): 651–658.10.1016/S0161-8938(01)00079-5
   Web of Science ®Google Scholar
• van Dijk, D., T. Teräsvirta, and P. H. Franses. 2002. “Smooth Transition Autoregressive Models – A Survey of Recent Developments.” Econometric Reviews 21: 1–47.10.1081/ETC-120008723
   Google Scholar
• Eryigit, S. B., K. S. Eryigit, and A. U. Selen. 2012. “The Long-run Linkages between Education, Health and Defence Expenditures and Economic Growth: Evidence from Turkey.” Defence and Peace Economics 23 (6): 559–574.10.1080/10242694.2012.663577
   Web of Science ®Google Scholar
• Farzanegan, M. R. 2014. “Military Spending and Economic Growth: The Case of Iran.” Defence and Peace Economics 25 (3): 247–269.10.1080/10242694.2012.723160
   Web of Science ®Google Scholar
• Fok, D., D. van Dijk, and P. Franses. 2004. A multi-level panel STAR model for US manufacturing sectors. Working Paper, Rotterdam: University of Rotterdam.
   Google Scholar
• Fouquau, J., C. Hurlin, and I. Rabaud. 2008. “The Feldstein–Horioka Puzzle: A Panel Smooth Transition Regression Approach.” Economic Modelling 25: 284–299.10.1016/j.econmod.2007.06.008
   Web of Science ®Google Scholar
• Georgiou, M. N. 2015. “Economic Freedom and Human Development Index - a Panel Data Analysis.” SSRN: http://ssrn.com/abstract=2601736.
   Google Scholar
• Giavanni, F., T. Jappelli, and M. Pagano. 2000. “Searching for Non-Linear Effects of Fiscal Policy: Evidence from Industrial and Developing Countries.” European Economic Review 44: 1259–1289.
   Web of Science ®Google Scholar
• González, A., T. Teräsvirta, and D. van Dijk. 2005. “Panel Smooth Transition Regression Models.” SSE/EFI Working Paper Series in Economics and Finance 604: 1–33.
   Google Scholar
• Hansen, B. E. 1999. “Threshold Effects in Non-Dynamic Panels: Estimation, Testing, and Inference.” Journal of Econometrics 93: 345–368.10.1016/S0304-4076(99)00025-1
   Web of Science ®Google Scholar
• Heo, U. 1999. “Modelling the Defence-Growth Relationship around the Globe.” Journal of Conflict Resolution 42: 637–657.
   Web of Science ®Google Scholar
• Herzer, D., and M. Grimm. 2012. “Does Foreign Aid Increase Private Investment?” Evidence from Panel Cointegration. Applied Economics 44 (20): 2537–2550.
   Google Scholar
• Hirnissa, M. T., M. S. Habibullah, and A. H. Baharom. 2009. Military expenditure and economic growth in Asean-5 Countries. Journal of Sustainable Development 2: 192–202.
   Google Scholar
• Karagianni, S., and M. Pempetzoglu. 2009. “Defense Spending and Economic Growth in Turkey: A Linear and Non‐Linear Granger Causality Approach.” Defence and Peace Economics 20 (2): 139–148.10.1080/10242690801923173
   Web of Science ®Google Scholar
• Khodabakhshi, A. 2011. “Relationship between GDP and Human Development Indices in India.” International Journal of Trade, Economics and Finance 2 (3): 251–253.10.7763/IJTEF.2011.V2.111
   Google Scholar
• Knight, M., N. Loayza, and D. Villanueva. 1996. The peace dividend: military spending cuts and economic growth. IMF Staff Papers 43: 1–37.
   Google Scholar
• Lai, C.-N., B.-N. Huang, and C.-W. Yang. 2005. “Defense Spending and Economic Growth across the Taiwan Straits: A Threshold Regression Model.” Defence and Peace Economics 16 (1): 45–57.10.1080/1024269052000323542
   Web of Science ®Google Scholar
• Majeski, S. J. 1992. “Defence Budgeting, Fiscal Policy, and Economic Performance.” In The Political Economy of Military Spending in the United States, edited by A. Mintz, 217–237. London: Routledge.
   Google Scholar
• Maria, A. P. 2012. “The Impact of Social Factors on Economic Growth: Empirical Evidence for Romania and European Union Countries.” Romanian Journal of Fiscal Policy 3 (2): 1–16.
   Google Scholar
• Mintz, A., and R. T. Stevenson. 1995. “Defense Expenditures, Economic Growth, and the ‘Peace Dividend’: A Longitudinal Analysis of 103 Countries.” Journal of Conflict Resolution 39 (2): 283–305.10.1177/0022002795039002004
   Web of Science ®Google Scholar
• Pan, C.-I., T. Chang, and Y. Wolde-Rufael. 2015. “Military Spending and Economic Growth in the Middle East Countries: Bootstrap Panel Causality Test.” Defence and Peace Economics 26 (4): 443–456.10.1080/10242694.2014.891356
   Web of Science ®Google Scholar
• Pan, Sheng-Chieh, Shiao-Yen Liu, and Po-Chin Wu. 2014. “Re-Testing the Tourism-Led Growth Hypothesis Using Panel Smooth Transition Regression Models.” Tourism Economics 20: 39–50.10.5367/te.2013.0262
   Web of Science ®Google Scholar
• Pesaran, M. H., Y. Shin, and R. Smith. 2001. “Bounds Testing Approaches to the Analysis of Level Relationships.” Journal of Applied Econometrics 16: 289–326.10.1002/(ISSN)1099-1255
   Web of Science ®Google Scholar
• Pieroni, L. 2009. “Military Expenditure and Economic Growth.” Defence and Peace Economics 20 (4): 327–339.10.1080/10242690701589876
   Web of Science ®Google Scholar
• Sandler, T., and K. Hartley. 1995. The Economics of Defence. Cambridge: Cambridge University Press.
   Google Scholar
• Sen, A. 2000. “A Decade of Human Development.” Journal of Human Development 1 (1): 17–23.10.1080/14649880050008746
   Google Scholar
• Shieh, J., C. Lai, and W. Chang. 2002. “The Impact of Military Burden on Long-Run Growth and Welfare.” Journal of Development Economics 68: 443–454.10.1016/S0304-3878(02)00022-6
   Web of Science ®Google Scholar
• Stroup, M. D., and J. C. Heckelman. 2001. “Size of the Military Sector and Economic Growth: A Panel Data Analysis of Africa and Latin America.” Journal of Applied Economics 49: 329–360.
   Google Scholar
• Tiwari, A. K., and M. Shahbaz. 2013. “Does Defence Spending Stimulate Economic Growth in India? A Revisit.” Defence and Peace Economics 24 (4): 371–395.10.1080/10242694.2012.710814
   Web of Science ®Google Scholar
• Wu, Po-Chin, Shiao-Yen Liu, and Sheng-Chieh Pan. 2013. “Nonlinear Bilateral Trade Balance-Fundamentals Nexus: A Panel Smooth Transition Regression Approach.” International Review of Economics & Finance 27: 318–329.
   Web of Science ®Google Scholar
• Wu, Po-Chin, Shiao-Yen Liu, and Sheng-Chieh Pan. 2014. “Does Misery Index Matter for the Persistence of Health Spending? Evidence from OECD Countries.” Social Indicators Research 118 (2): 893–910.10.1007/s11205-013-0450-4
   Web of Science ®Google Scholar
• Yakovlev, P. 2007. “Arms Trade, Military Spending, and Economic Growth.” Defence and Peace Economics 18: 317–338.10.1080/10242690601099679
   Web of Science ®Google Scholar
• Yang, A. J. F., W. N. Trumbull, C. W. Yang, and B.-N. Huang. 2011. “On the Relationship between Military Expenditure, Threat, and Economic Growth: A Nonlinear Approach.” Defence and Peace Economics 22 (4): 449–457.10.1080/10242694.2010.497723
   Web of Science ®Google Scholar
• Yildirim, J., and S. Sezgin. 2002. “Defence, Education and Health Expenditures in Turkey, 1924–96.” Journal of Peace Research 39 (5): 569–580.10.1177/0022343302039005004
   Web of Science ®Google Scholar
• Yildirim, J., S. Sezgin, and N. Öcal. 2005. “Military Expenditure and Economic Growth in Middle Eastern Countries: A Dynamic Panel Data Analysis.” Defence and Peace Economics 16 (4): 283–295.10.1080/10242690500114751
   Web of Science ®Google Scholar