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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

 

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