IDEAS home Printed from https://ideas.repec.org/a/bpj/pepspp/v21y2015i4p479-487n2.html
   My bibliography  Save this article

Military Expenditures and Free-Riding in NATO

Author

Listed:
  • Odehnal Jakub

    (Department of Economics, University of Defence, Kounicova 65, 66210 Brno, Czech Republic)

Abstract

Changes in the security environment after the Cold War and decreasing number of armed conflicts in NATO member states lead these countries to a gradual reduction in military expenditure. However, new security threats that these countries faced at the beginning of the 21st century brought a massive growth of military expenditure especially in the USA which lead to significant deepening of disparities between the USA and European NATO member states. The aim of the article is to investigate disproportionality of burden sharing among 28 NATO members and via multidimensional statistic methods identify free-riding in Alliances. A model based on theory of the demand for military spending provides the basis for an investigation of the disparities (identified especially in the characteristics of the economic and security environment) in determinants influencing military expenditure. Finding suggest that the Alliance is not mainly an economically homogenous body and individual economies thus allocate a significantly different amount of GDP for the needs of the armed forces in dependence on political priorities of individual governments, public finances or overall economic condition of national economies. However, the results of the classification model reveal the fact that group of countries identified as core states of the “traditional” NATO member states (with above-average values of variables) do not allocate the long-term recommended amount of military expenditure of 2% of GDP. These countries are suspected of dangerous free-riding.

Suggested Citation

  • Odehnal Jakub, 2015. "Military Expenditures and Free-Riding in NATO," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 21(4), pages 479-487, December.
    • Handle: RePEc:bpj:pepspp:v:21:y:2015:i:4:p:479-487:n:2
    DOI: 10.1515/peps-2015-0015
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/peps-2015-0015
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.
    File URL: https://libkey.io/10.1515/peps-2015-0015?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Paul Dunne & Eftychia Nikolaidou, 2001. "Military expenditure and economic growth: A demand and supply model for Greece, 1960-96," Defence and Peace Economics, Taylor & Francis Journals, vol. 12(1), pages 47-67.
    2. Paul Dunne & Sam Perlo-Freeman, 2003. "The Demand for Military Spending in Developing Countries," International Review of Applied Economics, Taylor & Francis Journals, vol. 17(1), pages 23-48.
    3. J. Paul Dunne & Sam Perlo-Freeman, 2003. "The demand for military spending in developing countries: A dynamic panel analysis," Defence and Peace Economics, Taylor & Francis Journals, vol. 14(6), pages 461-474.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Seemab Gillani & Muhammad Nouman Shafiq & Tusawar Iftikhar Ahmad, 2019. "Military Expenditures and Health Outcomes: A Global Perspective," iRASD Journal of Energy and Environment, International Research Association for Sustainable Development (iRASD), vol. 1(1), pages 1-20, June.
    2. Seemab Gillani & Muhammad Nouman Shafiq & Tusawar Iftikhar Ahmad, 2019. "Military Expenditures and Health Outcomes: A Global Perspective," iRASD Journal of Economics, International Research Alliance for Sustainable Development (iRASD), vol. 1(1), pages 1-20, June.
    3. Jakub Odehnal & Jiří Neubauer & Lukáš Dyčka & Tereza Ambler, 2020. "Development of Military Spending Determinants in Baltic Countries—Empirical Analysis," Economies, MDPI, vol. 8(3), pages 1-18, August.
    4. Paresh Kumar Narayan & Russell Smyth, 2007. "The Military Expenditure-External Debt Nexus: New Evidence From A Panel Of Middle Eastern Countries," Monash Economics Working Papers 17-07, Monash University, Department of Economics.
    5. Yasmine M. Abdelfattah & Aamer S. Abu-Qarn & J. Paul Dunne & Shadwa Zaher, 2014. "The Demand for Military Spending in Egypt," Defence and Peace Economics, Taylor & Francis Journals, vol. 25(3), pages 231-245, June.
    6. Carmen Camacho & Yu Sun, 2017. "Longterm decision making under the threat of earthquakes," Working Papers halshs-01670507, HAL.
    7. Christos Kollias & Nikolaos Mylonidis & Suzanna-Maria Paleologou, 2007. "A Panel Data Analysis Of The Nexus Between Defence Spending And Growth In The European Union," Defence and Peace Economics, Taylor & Francis Journals, vol. 18(1), pages 75-85.
    8. Sheng-Tung Chen & Jyun-Wei Lai & Arwin Pang, 2015. "The effect of military service system change on the demand for military expenditure," Defence and Peace Economics, Taylor & Francis Journals, vol. 26(6), pages 623-633, December.
    9. Vincenzo Bove & Jennifer Brauner, 2016. "The demand for military expenditure in authoritarian regimes," Defence and Peace Economics, Taylor & Francis Journals, vol. 27(5), pages 609-625, September.
    10. Bove Vincenzo & Elia Leandro & Pelliccia Marco, 2016. "Centrality in Trade Networks and Investment in Security," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 22(1), pages 27-39, January.
    11. Masako Ikegami & Zijian Wang, 2023. "Does military expenditure crowd out health-care spending? Cross-country empirics," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(2), pages 1657-1672, April.
    12. Douch Mohamed & Solomon Binyam, 2018. "Status or Security: The Case of the Middle East and North Africa Region," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 24(3), pages 1-12, September.
    13. Una Hakvåg, 2017. "Russian defense spending after 2010: the interplay of personal, domestic, and foreign policy interests," Post-Soviet Affairs, Taylor & Francis Journals, vol. 33(6), pages 496-510, November.
    14. Jennifer Brauner, 2015. "Military spending and democracy," Defence and Peace Economics, Taylor & Francis Journals, vol. 26(4), pages 409-423, August.
    15. Farzanegan, Mohammad Reza, 2017. "The impact of oil rents on military spending: Does corruption matter?," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168157, Verein für Socialpolitik / German Economic Association.
    16. J Paul Dunne & Sam Perlo-Freeman & Ron P Smith, 2008. "Determining Military Expenditures: Arms Races and Spill-Over Effects in Cross-Section and Panel Data," Discussion Papers 0801, British University in Egypt, Faulty of Business Administration, Economics and Political Science.
    17. Islam, Muhammed N., 2015. "Economic growth, repression, and state expenditure in non-democratic regimes," European Journal of Political Economy, Elsevier, vol. 37(C), pages 68-85.
    18. Rota, Mauro, 2011. "Military Burden and the Democracy Puzzle," MPRA Paper 35254, University Library of Munich, Germany.
    19. David K Levine & Salvatore Modica, 2013. "Conflict, Evolution, Hegemony, and the Power of the State," Levine's Working Paper Archive 786969000000000692, David K. Levine.
    20. Vahe Lskavyan, 2011. "Democracy levels and the income-military expenditure relationship," Applied Economics Letters, Taylor & Francis Journals, vol. 18(15), pages 1485-1489.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:pepspp:v:21:y:2015:i:4:p:479-487:n:2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.