REFERENCES AL-Jarrah, M. A., 2005. Defense spending and economic growth in an oil-rich country: The case of Saudi Arabia. Pakistan Economic and Social Review, 43(2), pp. 151-166. Antonakis, N., 1997. Military expenditure and economic growth in Greece, 1960–1990. Journal of Peace Research, 34(1), pp. 89-100. Assery, A. A., 1995. Causality between defence spending and economic growth in mainland China: Revisited. Discussion Paper, Economic Department, King Saud University. Atesoglu, H.S., 2009. Defense spending and aggregate output in the United States. Defence and Peace Economics, 20(1), pp. 21-26. Barro, R. J., 1990. Government spending in a simple model of endogenous growth. Journal of Political Economy, 98(5), pp. S103-S125. Benoit, E., 1973. Defense and economic growth in developing countries. Lexington, MA: Lexington Books. Benoit, E., 1978. Growth and defense in developing countries. Economic Development and Cultural Change, 26(2), pp. 271-280. Breitung, J., 2005. A parametric approach to the estimation of cointegration vectors in panel data. Econometric Reviews, 24(2), pp. 151-173. Breusch, T. and A. Pagan., 1980. The Lagrange Multiplier test and its application to model specification in econometrics. Review of Economic Studies, 47(1), pp. 239-253. Brumm, H. J., 1997. Military spending, government disarray and economic growth: A cross-country empirical analysis. Journal of Macroeconomics, 19(4), pp. 827-838. Chang, T.Y., Fang, W., Wen, L-F., and Liu, C-W., 2001. Defense spending, economic growth and temporal causality: Evidence from Taiwan and mainland China, 1952–1995. Applied Economics, 33(10), pp. 1289-1299. Chang, H.C., Huang, B.N., and Yang, C.W., 2011. Military expenditure and economic growth across different groups: A dynamic panel Granger-causality approach. Economic Modelling, 28(6), pp. 2416-2423. Chen, C-H., 1993. Causality between defence spending and economic growth: the case of mainland China, Journal of Economic Studies, 20(6), pp.37-43. Cohen, J. S., Stevenson., R., Mintz, A. and Ward, M. D., 1996. Defence expenditures and economic growth in Israel: the indirect link. Journal of Peace Research, 33(3), pp. 341-352. Deger, S., 1986. Military expenditure in Third World Countries: The economic effect, Routledge & Kegan Paul, New York: Methuen. Faini, R., Annex, P. and Taylor, L., 1984. Defence spending, economic structure and growth: Evidence among countries and over time. Economic Development and Cultural Change, 32(3), pp. 487-498. Gadea, M. D., Pardos, E., and Perez-Fornies, C., 2004. A long–run analysis of defence spending in the NATO countries (1960-99). Defence and Peace Economics, 15(3), pp. 231-249. Galvin, H., 2003. The impact of defence spending on the economic growth of developing countries: A cross-section study. Defence and Peace Economics, 14(1), pp. 51-59. Granger, C.W.J., 2003. Some aspects of causal relationships. Journal of Econometrics, 112(1), 69-71. Grobar, L. M. and Porter, R. C., 1989. Benoit revisited: Defence spending and economic growth in LDCs. The Journal of Conflict Resolution, 33(2), pp. 318-345. Guaresma, J.C. and Reitschuler, G., 2003. “Guns or butter?” revisited: Robustness and nonlinearity issues in the defense-growth nexus. Scottish Journal of Political Economy, 53(4), pp. 523-541. Hirnissa, T.M., and Baharom, H.A., 2009. Military expenditure and economic growth in Asean 5 countries. Journal of Sustainable Development, 2(2), pp.192-202. Hurlin, C., 2008. Testing for Granger non causality in heterogeneous panels. Mimeo, Department of Economics: University of Orleans. Joerding, W., 1986. Economic growth and defence spending: Granger Causality. Journal of Development Economics, 21(1), pp. 36-40. Keller, K., Poutvaara, P., and Wagner, A., 2009. Military draft and economic growth in OECD countries. Defence and Peace Economics, 20(5), pp. 373-393. Klein, T. O., 2004. Military expenditure and economic growth: Peru 1970-1996. Defence and Peace Economics, 15(3), pp. 275-288. Kollias, C., Mylonidis, N. and Paleologou, S-M., 2007. A panel data analysis of the nexus between defence spending and growth in the European Union. Defence and Peace Economics, 18(1), pp. 75-85. Kónya, L., 2006. Exports and growth: Granger causality analysis on OECD countries with a panel data approach. Economic Modelling, 23(6), pp. 978-992. LaCivita, C. J. and Frederiksen, P. C., 1991. Defence spending and economic growth An alternative approach to the causality issue. Journal of Development Economics, 35(1), pp. 117-126. Lai, C.N., Huang, B. N. and Yang, C. W., 2005. Defense spending and economic growth across the Taiwan Straits: A threshold regression model. Defence and Peace Economics, 16(1), pp. 45-57. Landau, D., 1996. Is one of the ‘Peace Dividends’ negative? Military expenditure and economic growth in the wealthy OECD countries. The Quarterly Review of Economics and Finance, 36(2), pp. 183-195. Lee, C.C. and Chang, C.P., 2006. The long-run relationship between defence expenditures and GDP in Taiwan. Defence and Peace Economics,17(4), pp. 361-385. Lee, C.C. and Chen, S.T., 2007. Do defence expenditures spur GDP: A panel analysis from OECD and non-OECD countries. Defence and Peace Economics, 18(3), pp. 265-280. Lim, D., 1983. Another look at growth and defense in Less Developed Countries. Economic Development and Cultural Change, 31(2), pp. 377-384. Lin, E.S., Wu, Y-H., and Chou, T-S., 2012. Country survey: Defense policy and military spending in Taiwan, 1952-2009. Defence and Peace Economics, 23(4), pp. 343-364. Madden G.G. and Haslehurst, P.I., 1995. Causal analysis of Australian economic growth and military expenditure: A note. Defence and Peace Economics, 6(2), pp. 115-121. Mark N.C., Ogaki, M., and Sul, D., 2005. Dynamic seemingly unrelated cointegrating regression. Review of Economic Studies, 72(3), pp. 797-820. Narayan, P.K. and Singh, B., 2007. Modelling the relationship between defense spending and economic growth for the FIJI islands. Defence and Peace Economics,18(4), pp. 391-401. Özsoy, O., 2008. Defence pending and the macroeconomy: The case of Turkey. Defence and Peace Economics, 19(3), pp. 195-208. Pesaran, M.H., 2004. General diagnostic tests for cross section dependence in panels. Cambridge Working Papers in Economics No. 0435, Faculty of Economics, University of Cambridge. Pesaran, M. H., 2006. Estimation and Inference in Large Heterogeneous Panels with Multifactor Error Structure. Econometrica, 74 (4), pp. 967-1012. Pesaran, M.H., Shin, Y., and Smith, R.J., 1999. Pooled mean group estimation of dynamic heterogeneous panels. Journal of the American Statistical Association, 94(446), pp. 621-634. Pesaran, M. H., Ullah, A., and Yamagata, T., 2008. A bias-adjusted LM test of error cross-section independence. The Econometrics Journal, 11(1), pp.105-127. Pesaran, M. H., and Yamagata, T., 2008. Testing slope homogeneity in large panels. Journal of Econometrics, 142(1), pp. 50-93. Ram, R., 1995. Defense expenditure and economic growth. In Handbook of Defense Economics, edited by Sandler, T. and Hartley, K., Amsterdam: Elsevier, pp. 251-273. Samuelson, P. A., 1954. The pure theory of public expenditure. The Review of Economics and Statistics, 36(4), pp. 387-389. Sarafidis, V., Yamagata, T. and Robertson, D., 2009. A test of cross section dependence for a linear dynamic panel model with regressors. Journal of Econometrics, 148(2), pp. 149-161. Swamy, P.A.V.B., 1970. Efficient inference in a random coefficient regression model. Econometrica, 38(2), pp. 311-323. Wijewerra, A. and Webb, M.J., 2011. Military spending and economic growth in South Asia: A panel data analysis, Defence and Peace Economics, 22(5), pp. 545-554. Zellner, A., 1962. An efficient method of estimating seemingly unrelated regressions and tests for aggregation bias. Journal of the American Statistical Association, 57, 348-368. *** World Development Indicators, 2011. Washington, D.C.: The World Bank (producer and distributor). Available at [Accessed 5 May 2013].