A note on the causal relationship between defence spending and growth in Greece: 1955-93

The causal relationship between economic growth and defence spending has at tracted considerable attention and has been the subject of many empirical s tudies. This paper investigates the existence of a causal link between mili tary expenditure and economic growth in the case of Greece for the period 1 955-93. By European Union standards, Greece allocates substantial human and material resources to defence. At the same time, Greece is the poorest Eur opean Union member facing chronic economic problems. Using the concept of G ranger-causality, the findings reported herein suggest that neither variabl e Granger-causes the other disclosing thereof the absence of any causal ord ering between them.