Table 4. Results of SEMs, and panel fixed effects model
| Variables | SEMs (1) | SEMs (2) | Panel fixed effects (3) | Panel fixed effects (4) |
| lnDE | lnHE | lnDE | lnHE |
| lnDE | | −0.1401***(0.0095) | | −0.2591***(0.0201) |
| lnHE | −0.2743***(0.0198) | | −0.3447***(0.0267) | |
| laglnHE (T-1) | | 0.7170***(0.0138) | | 0.2692***(0.0190) |
| laglnDE (T-1) | 0.8118***(0.0106) | | 0.3940***(0.0162) | |
| lnDEBT | −0.0199***(0.0057) | −0.0114**(0.0049) | −0.0359***(0.0097) | −0.0199**(0.0090) |
| lnOGE | −2.0969***(0.1139) | −1.7610***(0.0925) | −3.6079***(0.1307) | −3.5994***(0.1126) |
| lnGDP | 0.0008(0.0059) | −0.0075(0.0051) | −0.0819***(0.0122) | −0.0123(0.0115) |
| DI | 0.0100***(0.0022) | 0.0115***(0.0018) | 0.0097(0.0060) | 0.0157***(0.0055) |
| CP | −0.0015***(0.0003) | −0.0005(0.0003) | −0.0008(0.0007) | −0.0002(0.0007) |
| lnFDI | −0.0017(0.0035) | −0.0075**(0.0030) | 0.0073**(0.0037) | −0.0018(0.0034) |
| CI | −0.0179(0.0343) | −0.0037(0.0297) | −0.0189(0.0299) | −0.0195(0.0275) |
| POP | 0.0001(0.0001) | −0.0000(0.0001) | 0.0016(0.0011) | 0.0050***(0.0010) |
| Constant | 10.1923***(0.5558) | 8.6416***(0.4496) | 18.8133***(0.6480) | 18.1177***(0.5743) |
| Observations | 1,415 | 1,415 | 1,415 | 1,415 |
| Adj R-sq/R-sq | 0.9604 | 0.9088 | 0.7060 | 0.6640 |
| Countries | 136 | 136 | 136 | 136 |
| Hausman test | | | p<0.000 | p<0.000 |
| Breusch-pagan test | 220.0512*** | | |
Standard errors in parentheses
p<0.1,
p<0.05,
p<0.01.
DE, Defense Expenditure; HE, Public Health Expenditure; DEBT, Government Debt; OGE, Other Government Expenditure; GDP, Gross Domestic spending Per capita; DI, Democracy Index; CP, Corruption Perception index; FDI, Foreign Direct Investment; CI, Civil International violence; POP, Population; SEMS, Simultaneous Equation Models.