Date of Award
Bachelor of Arts
This paper examines the relationship between defense spending and economic growth in the United States of America between 1947 and 2016. Using quarterly data from the Federal Reserve of St. Louis Economic Data and the Granger Causality methodology, this study examines the potential two-way causality between defense spending and economic growth. The results suggest that over the longer time span of 6-7 years, Granger Causality was not seen between defense spending and economic growth. However, while analyzing incremental periods in smaller sections, there were differing findings about the nature of causality.
Manchester, Colin, "The Relationship Between Defense Expenditures and Economic Growth: A Granger Causality Approach" (2017). Business/Business Administration. 37.