7 Analysis of the nexus of military expenditure and profit
Country cases
Introduction
The chapter examines the effect of milex on the rate of profit, using the autoregressive distributed lag model (ARDL) Bounds Test, a non-linear ARDL, and the Toda-Yamamoto method for 31 countries for different time periods, ranging from 1950 to 2016. The main goal is to provide some complementary evidence to the relationship between milex and the profit rate, which was discussed in detail in Chapter 6.
It is worthwhile to support panel data analyses with time-series investigations, for two main reasons. First, panel studies cannot capture the full dynamics of the relationship in question for each country. Second, particularly in the case of strongly balanced ...
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