Method

OLS

FE

OLS

FE

Dependent Variable

Defense expenses—country 2

(3)

(4)

Independent Variables

Exports_1 to 2

0.121*

0.125**

Exports_2 to 1

0.007

0.077

Imports_1 to 2

0.093

0.095

Imports_2 to 1

0.110

0.112

Constant term

0.064**

0.064***

0.061**

0.061**

F-stat

121.21

1.886

J-stat

74.580

1.939

p-value

0.001

0.013

0.162

0.340