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

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  • Christos Kollias
  • Suzanna-Maria Paleologou

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.

Suggested Citation

  • Christos Kollias & Suzanna-Maria Paleologou, 2003. "Domestic political and external security determinants of the demand for greek military expenditure," Defence and Peace Economics, Taylor & Francis Journals, vol. 14(6), pages 437-445.
    • Handle: RePEc:taf:defpea:v:14:y:2003:i:6:p:437-445
    DOI: 10.1080/1024269032000085206
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    References listed on IDEAS

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    Cited by:

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    4. Bove, Vincenzo & Efthyvoulou, Georgios & Navas, Antonio, 2017. "Political cycles in public expenditure: butter vs guns," Journal of Comparative Economics, Elsevier, vol. 45(3), pages 582-604.
    5. Klomp, Jeroen, 2023. "Political budget cycles in military expenditures: A meta-analysis," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 1083-1102.
    6. Andreas S. Andreou & George A. Zombanakis, 2011. "Financial Versus Human Resources In The Greek--Turkish Arms Race 10 Years On: A Forecasting Investigation Using Artificial Neural Networks," Defence and Peace Economics, Taylor & Francis Journals, vol. 22(4), pages 459-469, November.
    7. Björn Kauder & Niklas Potrafke & Simone Winterer, 2015. "The Growth of Defense Spending in Germany (1951–2011): What was the Influence of the Political Parties?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 68(10), pages 19-26, May.
    8. İbrahim Sezer Belliler, 2023. "Convergence of Military Expenditures in MENA Countries: Evidences from a Fourier Panel Unit Root Test with Multiple Breaks," EKOIST Journal of Econometrics and Statistics, Istanbul University, Faculty of Economics, vol. 0(39), pages 183-199, December.
    9. Andreou, Andreas S. & Zombanakis, George A., 2010. "Financial vs human resources in the Greek-Turkish arms race 10 years on," MPRA Paper 38505, University Library of Munich, Germany.
    10. Kollias, Christos & Manolas, George & Paleologou, Suzanna-Maria, 2004. "Defence expenditure and economic growth in the European Union: A causality analysis," Journal of Policy Modeling, Elsevier, vol. 26(5), pages 553-569, July.
    11. Dimitrios PAPARAS & Christian RICHTER & Alexandros PAPARAS, 2016. "Military Spending and Economic Growth in Greece and the Arms Race between Greece and Turkey," Journal of Economics Library, KSP Journals, vol. 3(1), pages 38-56, March.
    12. 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.
    13. Andreou Andreas S & Zombanakis George A, 2006. "The Arms Race between Greece and Turkey: Commenting on a Major Unresolved Issue," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 12(1), pages 1-18, September.
    14. Kollias, Christos & Messis, Petros & Mylonidis, Nikolaos & Paleologou, Suzanna-Maria, 2009. "Terrorism and the effectiveness of security spending in Greece: Policy implications of some empirical findings," Journal of Policy Modeling, Elsevier, vol. 31(5), pages 788-802, September.
    15. Julide Yildirim & Nadir Ocal, 2006. "Arms Race And Economic Growth: The Case Of India And Pakistan," Defence and Peace Economics, Taylor & Francis Journals, vol. 17(1), pages 37-45.

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