THE RELATION BETWEEN GROWTH, ENERGY IMPORTS, MILITARIZATION AND CURRENT ACCOUNT BALANCE IN INDIA, BRAZIL, TURKEY AND PAKISTAN

Abstract

This paper analyzes the relationship among economic growth, current account balance, energy imports and militarization for the selected countries by using Markov Switching-Bayesian Vector Auto Regressive approach from 1972 to 2017. India, Brazil, Turkey and Pakistan are selected since they have higher rate of import of weapons, current account deficits, and high rates of energy imports. The results showed that the relation between the selected variables changes in these countries with respect to their energy and weapon import levels.. Energy imports increase in effect of militarization races and economic growth. The current account of the selected countries are vulnerable to the negative energy shocks and militarization.