The impact of military expenditure on external debt in Armenia

The paper explores the impact of military expenditure on external debt in Armenia using time series for 1994-2020. purpose this study was to verify initial hypothesis that main factor rise Armenia’s is increase spending directed at paying import products. conducted Johansen’s cointegration and Granger’s causality tests. results test showed there are long-term interdependencies between debt, as well trade balance debt; meanwhile interdependence non-military expenditures not found. caused an with a two-year lag, similar causal relationship also found current account debt. But more remarkable fact change expenditure, while reverse has been established.