| ID | 187355 |
| Title Proper | Cross–Country Dependence, Heterogeneity and the Growth Effects of Military Spending |
| Language | ENG |
| Author | Emmanouilidis, Kyriakos ; Karpetis, Christos |
| Summary / Abstract (Note) | Until today, the great majority of the relevant literature is dominated by growth models that assume common structural parameters and Total Factor Productivity (TFP) evolution across countries. In the context of the modified Solow convergence equation, the role of the present paper is to highlight the importance of incorporating cross–country differences, both in observables and unobservables, in the investigation of the defense–growth nexus. Special attention is paid to the heterogeneity in TFP growth and the cross–country dependence induced by global shocks. Furthermore, it analyzes the econometric issues involved by providing a brief review of various heterogeneous dynamic panel estimators. The presented estimators are then applied to two alternative panel specifications of the Solow model. Overall, the empirical application revealed that the Dynamic Common Correlated Effects (DCCE) estimator seems to be the most reliable option among the various dynamic panel estimators employed. |
| `In' analytical Note | Defence and Peace Economics Vol. 33, No.7; Nov 2022: p.842-856 |
| Journal Source | Defence and Peace Economics Vol: 33 No 7 |
| Key Words | Dynamic Panel Estimation ; Defense Spendin ; Geconomic Growth |