Work detail

A Panel Data Investigation of the Military Spending – Economic Growth Nexus in the EU

Author: Bc. Krzysztof Jerzy Uchman
Year: 2022 - winter
Leaders: MSc. Shahriyar Aliyev
Work type: Bachelors
Language: English
Pages: 51
Awards and prizes:
Abstract: The thesis examines the relationship between economic growth, investment, and military
expenditure, utilizing a balanced data panel for 14 European countries over three periods: 1970
– 1991, 1992 – 2020, and 1970 – 2020. A vector autoregression model was applied to estimate
the relationship for the European population. Regression of the 14 European countries over the
entire period of 1970 – 2020 has yielded neither statistically significant autocorrelation nor
cross-correlation between the studied variables. The same is true when regressing the 14
countries in the period 1992 – 2020. For the same group of European countries in the period
1970 – 1991 some statistical significance has been found in the autocorrelation between
investment as a share of GDP and its lags. It appears that the introduction of a time break
between year 1991 and 1992 (the fall of the Iron Curtain) has no impact on the studied
relationship for the selected group of countries and the time period. The results of the thesis
suggest no identifiable relationship between the variables for the chosen European sample of
14 countries.




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