This dissertation firstly examines literature connected to this topic in chapter 2. Secondly, chapter 3
summarizes necessary methodology and data used throughout the dissertation. Thirdly, it compares
the results of military expenditure made by Cobb-Douglas-Solow production function forecast and an
Auto regressive model, in chapter 4. Fourthly, in the chapter 5, with a better performing model, it
forecasters the military expenditure from 2015 to 2024 for France, Germany, UK and Italy, because
th... show full abstractThis dissertation firstly examines literature connected to this topic in chapter 2. Secondly, chapter 3
summarizes necessary methodology and data used throughout the dissertation. Thirdly, it compares
the results of military expenditure made by Cobb-Douglas-Solow production function forecast and an
Auto regressive model, in chapter 4. Fourthly, in the chapter 5, with a better performing model, it
forecasters the military expenditure from 2015 to 2024 for France, Germany, UK and Italy, because
they represent more than 65% of European military expenditure and should give us an idea about the
course of the European expenditure as a whole. Also, it compares forecasted expenditure of European
NATO countries and USA with Canada for the same period. Finally, in chapter 6, we examine whether
there is Granger causality between MS and GDP. Simply, if MS Granger causes GDP and vice versa. It
was found that AR is a better performing forecasting technique than CDS and that Granger causality
results are ambiguous. GDP Granger causes MS only for France and Italy and there is no evidence of
opposite causality. |