Method

OLS

FE

OLS

FE

Dependent Variable

Defense expenses—country 1

(1)

(2)

Independent Variables

Exports_1 to 2

0.133*

0.144*

Exports_2 to 1

0.061

0.066

Imports_1 to 2

0.176

0.175

Imports_2 to 1

0.015

0.029

Constant term

0.080**

0.079**

0.086**

0.085**

F-stat

8.772

5.174

J-stat

8.491

4.64

p-value

0.102

0.105

0.162

0.177