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An Assessment of the Relationship between Defence Expenditure and Sustainable Development in the Baltic Countries

Author

Listed:
  • Gitana Dudzevičiūtė

    (General Jonas Žemaitis Military Academy of Lithuania, Šilo Str. 5A, LT-10322 Vilnius, Lithuania)

  • Svajone Bekesiene

    (General Jonas Žemaitis Military Academy of Lithuania, Šilo Str. 5A, LT-10322 Vilnius, Lithuania)

  • Ieva Meidute-Kavaliauskiene

    (General Jonas Žemaitis Military Academy of Lithuania, Šilo Str. 5A, LT-10322 Vilnius, Lithuania)

  • Galina Ševčenko-Kozlovska

    (General Jonas Žemaitis Military Academy of Lithuania, Šilo Str. 5A, LT-10322 Vilnius, Lithuania)

Abstract

As geopolitical instability increases and new threats emerge, a number of countries are increasing their respective allocations for defence expenditure in order to take greater responsibility for their citizens in terms of defending and protecting their values and way of life. Small states such as Lithuania, Latvia, and Estonia must evaluate certain economic, political, and strategic factors when increasing their respective defence expenditure. While they do tend to increase expenditure on national defence matters, budgetary constraints often force them to cut funding in some civilian domains or to increase their borrowing on international markets. Therefore, the security and defence of small states must be addressed in an integrated way, taking into account economic, social, and environmental factors. The aim of this article is to assess the relationships between defence expenditure and sustainable development indicators during the period between 2000 and 2018 in the Baltic states. The authors of this article aimed to determine which sustainable development indicators have a significant impact upon a country’s expenditure when it comes to defence matters. The study was conducted using econometric methods, including Spearman’s correlation analysis and Automatic Linear Modelling (ALM). The research results revealed some differences amongst the Baltic countries. In Lithuania, the employment rate and R&D personnel as a share of the active population demonstrated a significant impact upon defence expenditure. In Latvia, defence expenditure was found to be affected by disposable household income per capita and environmental taxes as a share of total tax revenue. In Estonia, defence expenditure was mainly influenced by disposable household income per capita and energy import dependency. The study’s findings may be used to ensure both the security of the country and the implementation of the Sustainable Development Goals.

Suggested Citation

  • Gitana Dudzevičiūtė & Svajone Bekesiene & Ieva Meidute-Kavaliauskiene & Galina Ševčenko-Kozlovska, 2021. "An Assessment of the Relationship between Defence Expenditure and Sustainable Development in the Baltic Countries," Sustainability, MDPI, vol. 13(12), pages 1-27, June.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:12:p:6916-:d:577823
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    References listed on IDEAS

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    1. Vidmantė Giedraitytė & Rasa Smaliukienė & Tomas Vedlūga, 2022. "The Impact of Citizen Participation on Public Sentiments during Crises: Comparative Study of Estonia, Latvia, and Lithuania," Sustainability, MDPI, vol. 14(24), pages 1-18, December.
    2. Olcay Çolak & Sevilay Ece Gümüş Özuyar & Ömer Faruk Bölükbaşı, 2022. "Asymmetric Effects of the Defense Burden on Environmental Degradation: Evidence from NATO Countries," Sustainability, MDPI, vol. 15(1), pages 1-17, December.
    3. Galina Ševčenko-Kozlovska & Kristina Čižiūnienė, 2022. "The Impact of Economic Sustainability in the Transport Sector on GDP of Neighbouring Countries: Following the Example of the Baltic States," Sustainability, MDPI, vol. 14(6), pages 1-26, March.
    4. Galina Ševčenko-Kozlovska & Kristina Čižiūnienė, 2022. "A Study of the Relationship between Lithuanian International Migration Flows and Transport Sector Performance Indicators," Sustainability, MDPI, vol. 14(16), pages 1-22, August.
    5. BĂTUȘARU Cristina Maria & SBÂRCEA Ioana Raluca, 2023. "Security In The Context Of Sustainability: The Implications On Defence Expenditures," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 18(2), pages 48-66, August.

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