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The Demand for Military Expenditure in Developing Countries: Hostility versus Capability

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Author Info
J Paul Dunne () (School of Economics, University of the West of England)
Samuel Perlo-Freeman () (School of Economics, University of the West of England)
Ron P Smith () (Birkbeck College, London)

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Abstract

This paper has considers the interpretation of the empirical results of the developing literature on the demand for military spending that specifies a general model with arms race and spillover effects and estimates it on cross-section and panel data. It questions whether it is meaningful to talk of an ‘arms race’ in panel data or cross-section data, and suggests that it may be more appropriate to talk about the relevant variables – aggregate military spending of the ‘Security Web’ (i.e. all neighbours and other security-influencing powers) and the aggregate military spending of ‘Potential Enemies’– as acting as proxies for threat perceptions, which will reflect both hostility and capability.

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File URL: http://carecon.org.uk/DPs/0707.pdf
File Format: application/pdf
File Function: First version, 2007
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Publisher Info
Paper provided by University of the West of England, Department of Economics in its series Discussion Papers with number 0707.

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Length: 15 pages
Date of creation: Jun 2007
Date of revision:
Handle: RePEc:uwe:wpaper:0707

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Web page: http://www.uwe.ac.uk/bbs/acad/econ/econ.shtml
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Related research
Keywords: Military Spending; Developing Countries; Demand.;

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Find related papers by JEL classification:
H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data

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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. Paul Dunne & Sam Perlo-Freeman, 2003. "The Demand for Military Spending in Developing Countries," International Review of Applied Economics, Taylor and Francis Journals, vol. 17(1), pages 023-048, January. [Downloadable!] (restricted)
  2. Solomon Polachek & Carlos Seiglie & Jun Xiang, 2005. "Globalization and International Conflict: Can FDI Increase Peace?," Working Papers Rutgers University, Newark 2005-004, Department of Economics, Rutgers University, Newark. [Downloadable!]
  3. Collier, Paul & Hoeffler, Anke, 2002. "Military expenditure - threats, aid, and arms races," Policy Research Working Paper Series 2927, The World Bank. [Downloadable!]
  4. Dunne, J. Paul & Smith, Ron P., 2007. "The Econometrics of Military Arms Races," Handbook of Defense Economics, Elsevier. [Downloadable!] (restricted)
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This page was last updated on 2009-11-24.

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