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Table 5 Cointegration test

From: The effect of military spending on economic growth in MENA: evidence from method of moments quantile regression

Test

Statistics

Model 1

Model 2

Model 3

Model 4

Pedroni cointegration test

Modified Phillips–Perron t

2.395***

(0.008)

3.013*** (0.001)

2.354*** (0.009)

2.796*** (0.003)

 

Phillips–Perron t

 − 1.884**

(0.030)

 − 1.084 (0.139)

 − 1.564* (0.059)

 − 1.131 (0.1291)

 

Augmented Dickey–Fuller t

 − 0.340

(0.367)

0.834 (0.202)

0.0014 (0.500)

0.739 (0.300)

Kao cointegration test

Modified Dickey–Fuller t

 − 4.484***

(0.000)

 − 4.668*** (0.000)

 − 5.581*** (0.000)

 − 4.287*** (0.000)

 

Dickey–Fuller t

 − 3.215***

(0.001)

 − 3.240*** (0.001)

 − 4.051*** (0.000)

 − 3.306*** (0.001)

 

Augmented Dickey–Fuller t

 − 1.896**

(0.029)

 − 2.194** (0.014)

 − 2.377*** (0.009)

 − 2.069 *** (0.019)

 

Unadjusted modified Dickey–Fuller t

 − 4.229***

(0.000)

 − 4.308*** (0.000)

 − 5.122*** (0.000)

 − 3.765*** (0.000)

 

Unadjusted Dickey–Fuller t

 − 3.133***

(0.001)

 − 3.127*** (0.000)

 − 3.926 *** (0.000)

 − 3.137*** (0.001)

  1. ***, ** and * represent 1%, 5% and 10%, respectively. Model 1: effect of military expenditure (in absolute value) on real GDP. Model 2: effect of military burden (% of GDP) on real GDP. Model 3: effect of military expenditure (in absolute value) on real GDP per capita. Model 4: effect of military burden (% of GDP) on real GDP per capita