USING THE REGRESSION MODEL IN THE ANALYSIS OF THE CORRELATION BETWEEN THE GROSS DOMESTIC PRODUCT AND DEFENCE EXPENDITURES, IN NATO MEMBER STATES

BALTEȘ Nicolae, Lucian Blaga University of Sibiu

HUSERAȘ Alin, Lucian Blaga University of Sibiu

Abstract:
In this paper we propose to highlight correlation between the variables GDP and defence spending, using the linear regression model. It was observed, through the analysis of the literature, that one of the most important factors, influencing defense spending, is the GDP of the states. Thus, the objective of the study, is to try to get information about the ability of the economy (represented by GDP) to influence defense spending, in NATO member states. In the econometric model, the value of the dependency coefficient is expected to be very high and positive. The data from the Database were collected from the official sites.

Keywords: GDP, NATO, PLS regression method, the Pearson and Spearman coefficien

JEL Classification: H56, H61, P43

Volume: 73, Issue: Special

Pages: 9 - 19

Publication date: December, 2021

DOI: 10.56043/reveco-2021-0042

Download the article: http://economice.ulbsibiu.ro/revista.economica/archive/73S01baltes&huseras.pdf

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