MILITARIZATION, ECONOMIC GROWTH AND PETROLEUM CONSUMPTION IN BRAZIL, RUSSIAN, INDIA, CHINA, TURKEY, SOUTH AFRICA AND MEXICO

Abstract

This paper aimed to test the dynamic relationship between economic growth, petroleum consumption and militarization in Brazil, Russian, India, China, Turkey, South Africa and Mexico for the period 1987-2013. It was used to the bounds test approach and it was determined whether there was a short and a long-run relationship among militarization, petroleum consumption and economic growth. ARDL test found that militarization and petroleum consumption has a positive and a statistically significant impact on economic growth. Further, it was applied the Granger causality and determined the evidence of hi-directional causal relation between variables. Lastly, the forecast-error variance approach corrected the obtained results