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NATO at 70: Pledges, Free Riding, and Benefit-Burden Concordance

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  • Wukki Kim
  • Todd Sandler

Abstract

For 2011–2017, this paper revisits NATO burden sharing in light of recent developments and pledges to bolster members’ defense shares of GDP to 2%. Russian nationalism, enhanced transnational terrorism, and intrastate conflicts are apt to increase the publicness of NATO defense spending over the last eight years. When NATO allies’ defense shares of GDP are correlated with their GDP ranks, there is clear evidence of the exploitation of the large, rich allies by the small, poor allies, indicative of allies sharing purely public defense spending since 2011. Such exploitation and free riding has rarely been seen after 1967. In addition, there is an absence of concordance between NATO allies’ defense burdens and their derived benefit shares, consistent with greater defense publicness. Finally, we find further proof of exploitation and free riding for a broad-based measure of security spending.

Suggested Citation

  • Wukki Kim & Todd Sandler, 2020. "NATO at 70: Pledges, Free Riding, and Benefit-Burden Concordance," Defence and Peace Economics, Taylor & Francis Journals, vol. 31(4), pages 400-413, June.
  • Handle: RePEc:taf:defpea:v:31:y:2020:i:4:p:400-413
    DOI: 10.1080/10242694.2019.1640937
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    Cited by:

    1. Justin George & Todd Sandler, 2021. "EU Demand for Defense, 1990–2019: A Strategic Spatial Approach," Games, MDPI, vol. 12(1), pages 1-18, February.
    2. Economou Athina & Kollias Christos, 2023. "In NATO We Trust(?): The Russian Invasion of Ukraine and EU27 Citizens’ Trust in NATO," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 29(2), pages 129-144, May.
    3. Justin George & Todd Sandler, 2022. "NATO defense demand, free riding, and the Russo-Ukrainian war in 2022," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 49(4), pages 783-806, December.

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