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Domestic political and external security determinants of the demand for greek military expenditure

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Author Info
Christos Kollias
Suzanna-Maria Paleologou

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Abstract

By European Union and NATO standards, Greece consistently allocates substantial human and material resources to defence. The Greek defence burden (i.e. military expenditure as a share of GDP) has invariably been appreciably higher than the EU and NATO averages. The paper applies an autoregressive distributed lag model (ARDL) to present cointegrated estimates of the demand function for Greek military expenditure, in which domestic political factors and external security determinants are incorporated. Our empirical findings suggest that Greek defence spending over the period 1960-1998 has been influenced by both external security concerns, namely Turkey, as well as changes in the domestic political scene.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Defence and Peace Economics.

Volume (Year): 14 (2003)
Issue (Month): 6 (December)
Pages: 437-445
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Handle: RePEc:taf:defpea:v:14:y:2003:i:6:p:437-445

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Related research
Keywords: Greece; Turkey; Demand For Military Expenditure; Political Determinants; External Security; Cointegration; Autoregressive Distributed Lag Model;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Smith, Ron, 1995. "The demand for military expenditure," Handbook of Defense Economics, in: Keith Hartley & Todd Sandler (ed.), Handbook of Defense Economics, edition 1, volume 1, chapter 4, pages 69-87 Elsevier. [Downloadable!] (restricted)
  2. Engle, Robert F & Granger, Clive W J, 1987. "Co-integration and Error Correction: Representation, Estimation, and Testing," Econometrica, Econometric Society, vol. 55(2), pages 251-76, March. [Downloadable!] (restricted)
  3. Smith, R P, 1989. "Models of Military Expenditure," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 4(4), pages 345-59, Oct.-Dec.. [Downloadable!] (restricted)
  4. Pesaran, M.H. & Shin, Y., 1995. "An Autoregressive Distributed Lag Modelling Approach to Cointegration Analysis," Cambridge Working Papers in Economics 9514, Faculty of Economics, University of Cambridge.
  5. Pesaran, M. H. & Shin, Y. & Smith, R. J., 1996. "Testing for the 'Existence of a Long-run Relationship'," Cambridge Working Papers in Economics 9622, Faculty of Economics, University of Cambridge.
  6. Smith, R P, 1980. "The Demand for Military Expenditure," Economic Journal, Royal Economic Society, vol. 90(363), pages 811-20, December. [Downloadable!] (restricted)
  7. NADIR ÖCAL, 2002. "Asymmetric Effects Of Military Expenditure Between Turkey And Greece," Defence and Peace Economics, Taylor and Francis Journals, vol. 13(5), pages 405-416, January. [Downloadable!] (restricted)
  8. George Georgiou & Panayiotis Kapopoulos & Sophia Lazaretou, . "Modelling Greek - Turkish Rivalry: An Empirical Investigation Of Defence Spending Dynamics," Working Papers 9411, University of Crete, Department of Economics.
  9. Selami Sezgin & Jülide Yildirim, 2002. "The Demand for Turkish Defence Expenditure," Defence and Peace Economics, Taylor and Francis Journals, vol. 13(2), pages 121-128, January. [Downloadable!] (restricted)
  10. van Dalen, Hendrik P & Swank, Otto H, 1996. " Government Spending Cycles: Ideological or Opportunistic?," Public Choice, Springer, vol. 89(1-2), pages 183-200, October.
  11. Jurgen Brauer, 2002. "Survey and Review of the Defense Economics Literature on Greece and Turkey: What Have We Learned?," Defence and Peace Economics, Taylor and Francis Journals, vol. 13(2), pages 85-107, January. [Downloadable!] (restricted)
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