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The demand for military spending in developing countries: A dynamic panel analysis

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Author Info

  • J. Paul Dunne
  • Sam Perlo-Freeman

Abstract

Estimating demand functions for developing countries before and after the end of the Cold War, Dunne and Perlo-Freeman (2003) found little evidence of any change in the underlying relationship. One concern with their analysis was that the use of cross-section averages might have obscured important time series effects. This paper deals with this issue by analysing their data using static and dynamic panel data methods. This produces evidence of a change in relationship and suggests that the focus in the literature on cross-section analyses has indeed limited our understanding of important dynamic processes at work within countries.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/1024269032000085224
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Bibliographic Info

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

Volume (Year): 14 (2003)
Issue (Month): 6 ()
Pages: 461-474

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Handle: RePEc:taf:defpea:v:14:y:2003:i:6:p:461-474

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Related research

Keywords: Military Spending; Developing Countries; Demand;

References

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  1. Julide Yildirim & Selami Sezgin, 2005. "Democracy and Military Expenditure: A Cross-Country Evidence," Transition Studies Review, Springer, vol. 12(1), pages 93-100, 07.
  2. Smith, R P, 1980. "The Demand for Military Expenditure," Economic Journal, Royal Economic Society, vol. 90(363), pages 811-20, December.
  3. Jordi Molas-Gallart, 1997. "Country survey IX: Spain," Defence and Peace Economics, Taylor & Francis Journals, vol. 8(3), pages 267-306.
  4. 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.
  5. Dunne, John Paul & Pashardes, Panos & Smith, Ronald P, 1984. "Needs, Costs and Bureaucracy: The Allocation of Public Consumption in the UK," Economic Journal, Royal Economic Society, vol. 94(373), pages 1-15, March.
  6. Daniel P. Hewitt, 1991. "Military Expenditure," IMF Working Papers 91/53, International Monetary Fund.
  7. Smith, R P, 1989. "Models of Military Expenditure," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 4(4), pages 345-59, Oct.-Dec..
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Citations

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Cited by:
  1. Chen, Pei-Fen & Lee, Chien-Chiang & Chiu, Yi-Bin, 2014. "The nexus between defense expenditure and economic growth: New global evidence," Economic Modelling, Elsevier, vol. 36(C), pages 474-483.
  2. Rota, Mauro, 2011. "Military Burden and the Democracy Puzzle," MPRA Paper 35254, University Library of Munich, Germany.
  3. J Paul Dunne & Sam Perlo-Freeman & Ron P Smith, 2009. "Determining Military Expenditures: Arms Races and Spill-Over Effects in Cross-Section and Panel Data," Working Papers 0901, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
  4. J Paul Dunne & Samuel Perlo-Freeman & Ron P Smith, 2007. "The Demand for Military Expenditure in Developing Countries: Hostility versus Capability," Working Papers 0707, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
  5. Vincenzo Bove & Jennifer Brauner, 2011. "The Demand for Military Expenditure in Authoritarian Regimes," Birkbeck Working Papers in Economics and Finance 1106, Birkbeck, Department of Economics, Mathematics & Statistics.
  6. Germà Bel & Ferran Elias-Moreno, 2009. "Institutional Determinants of Military Spending," IREA Working Papers 200922, University of Barcelona, Research Institute of Applied Economics, revised Oct 2009.
  7. Aamer S. Abu-Qarn & J Paul Dunne & Yasmine M. Abdelfattah & Shadwa Zaher, 2010. "The Demand for Military Spending in Egypt," Working Papers 1001, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
  8. Paresh Kumar Narayan & Russell Smyth, 2007. "The Military Expenditure-External Debt Nexus: New Evidence From A Panel Of Middle Eastern Countries," Development Research Unit Working Paper Series 17-07, Monash University, Department of Economics.

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