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Table 9 Linear and nonlinear causality results

From: Defence expenditure and economic growth in Latin American countries: evidence from linear and nonlinear causality tests

  lnMGDP to lnGDP lnINV to lnGDP lnGDP to lnMGDP
Lineara Non Linearb Lineara Non Linearb Lineara Non Linearb
Raw data Raw data Resid. VAR Raw data Raw data Resid. VAR Raw data Raw data Resid. VAR
Argentina 7.8* −0.44 1.98** 12.2*** 0.50 −1.13 24.3*** 1.14 0.81
Bolivia 0.49 2.03** −0.37 0.9 0.63 0.43 0.81 0.44 −0.57
Brazil 13.2*** −0.43 1.75** 47.9*** −0.62 1.26* 3.3 −0.30 0.99
Chile 58.2*** 1.65** 1.03 78.0*** −0.23 0.31 97.4*** −1.12 −0.02
Colombia 3.9 −0.33 0.67 2.5 0.31 −0.33 3.4 −0.80 −0.57
Dominician Republic 4.9 1.37* 0.65 11.5** 1.67** −0.47 0.72 −0.29 0.72
Ecuador 1.6 0.21 0.24 0.27 −0.72 0.36 1.0 −0.43 0.18
El Salvador 2.0 1.74** 0.51 3.0 1.50* 1.03 2.1 1.27* 1.10
Guatemala 17.0*** −0.77 −0.19 18.3*** 1.32* −1.24 11.4*** 1.14 0.05
Mexico 11.7*** −0.28 0.62 19.5*** −0.39 −0.01 0.91 0.21 −0.02
Paraguay 0.78 0.85 −2.11 6.0** 1.87** 0.26
Peru 0.00 −0.06 0.89 0.00 −1.14 0.36 0.00 −0.09 −0.68
Venezuela 2.5* −1.28 −1.10 1.8 0.05 −0.40 0.00 −0.39 −0.55
  1. aModified Wald Chi-square statistics
  2. b T statistics
  3. ***, **, and * Significant at the 1, 5, and 10 levels, respectively
  lnINV to lnMGDP lnGDP to lnINV lnMGDP to lnINV
  Lineara Non Linearb Lineara Non Linearb Lineara Non Linearb
  Raw data Raw data Resid. VAR Raw data Raw data Resid. VAR Raw data Raw data Resid. VAR
Argentina 30.9*** 1.26* −.019 1.6 −0.00 −0.62 1.1 −0.09 −0.68
Bolivia 3.9 0.56 0.63 1.3 1.46* −1.24 1.2 1.01 0.05
Brazil 2.9 0.87 1.77** 57.4*** −0.00 1.97** 59.7*** 0.05 1.34*
Chile 59.3*** 0.60 −0.40 2.7 0.68 0.31 5.6 1.35* 1.05
Colombia 4.6 0.35 0.20 1.2 −0.67 0.32 1.0 1.25* 0.89
Dominician Republic 0.69 0.18 −0.68 30.5*** 0.22 0.78 66.0*** −0.04 1.02
Ecuador 0.06 0.56 0.06 0.79 −0.30 −1.41 6.6*** −0.04 −0.08
El Salvador 1.1 −0.14 −0.57 7.2* 1.76** 1.35* 3.0 1.09 −0.14
Guatemala 12.9*** −0.12 0.67 10.8*** 0.12 −0.47 25.9*** 0.39 0.06
Mexico 0.52 0.52 −0.41 25.2*** 0.04 0.46 12.6*** 0.57 0.77
Paraguay
Peru 0.05 1.40* 0.70 0.42 1.42* −0.87 1.2 1.10 1.24*
Venezuela 0.01 0.52 −0.04 0.00 −0.25 0.95 1.9 1.45* −0.13
  1. aModified Wald Chi-square statistics
  2. b T statistics
  3. ***, **, and * Significant at the 1, 5, and 10 levels, respectively