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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)

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 Function: First version, 2007
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Bibliographic Info

Paper provided by Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol in its series Working 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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Keywords: Military Spending; Developing Countries; Demand.;

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References

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  1. Paul Dunne & Sam Perlo-Freeman, 2003. "The Demand for Military Spending in Developing Countries," International Review of Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 17(1), pages 23-48.
  2. Solomon Polachek & Carlos Seiglie & Jun Xiang, 2005. "Globalization and International Conflict: Can FDI Increase Peace?," Working Papers Rutgers University, Newark, Department of Economics, Rutgers University, Newark 2005-004, Department of Economics, Rutgers University, Newark.
  3. Aamer S. Abu-Qarn & J Paul Dunne & Yasmine M. Abdelfattah & Shadwa Zaher, 2010. "The Demand for Military Spending in Egypt," Working Papers, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol 1001, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
  4. Dunne, J. Paul & Smith, Ron P., 2007. "The Econometrics of Military Arms Races," Handbook of Defense Economics, Elsevier, Elsevier.
  5. Collier, Paul & Hoeffler, Anke, 2002. "Military expenditure - threats, aid, and arms races," Policy Research Working Paper Series 2927, The World Bank.
  6. J. Paul Dunne & Sam Perlo-Freeman, 2003. "The demand for military spending in developing countries: A dynamic panel analysis," Defence and Peace Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 14(6), pages 461-474.
  7. James Murdoch & Todd Sandler, 2002. "Civil wars and economic growth: A regional comparison," Defence and Peace Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 13(6), pages 451-464.
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Citations

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Cited by:
  1. Vincenzo Bove & Georgios Efthyvoulou & Antonio Navas, 2013. "Political Cycles in Public Expenditure: Butter vs Guns," Working Papers, The University of Sheffield, Department of Economics 2013016, The University of Sheffield, Department of Economics.
  2. Germà Bel & Ferran Elias-Moreno, 2009. "Institutional Determinants of Military Spending," IREA Working Papers, University of Barcelona, Research Institute of Applied Economics 200922, University of Barcelona, Research Institute of Applied Economics, revised Oct 2009.
  3. David K. Levine & Salvatore Modica, 2013. "Conflict, evolution, hegemony, and the power of the state," Working Papers, Federal Reserve Bank of St. Louis 2013-023, Federal Reserve Bank of St. Louis.
  4. David K Levine & Salvatore Modica, 2013. "Conflict, Evolution, Hegemony, and the Power of the State," Levine's Working Paper Archive 786969000000000692, David K. Levine.
  5. Vincenzo Bove & Jennifer Brauner, 2011. "The Demand for Military Expenditure in Authoritarian Regimes," Birkbeck Working Papers in Economics and Finance, Birkbeck, Department of Economics, Mathematics & Statistics 1106, Birkbeck, Department of Economics, Mathematics & Statistics.
  6. Unal Tongur & Sara Hsu & Adem Yavuz Elveren, 2013. "Military Expenditures and Political Regimes: An Analysis Using Global Data, 1963-2001," ERC Working Papers, ERC - Economic Research Center, Middle East Technical University 1307, ERC - Economic Research Center, Middle East Technical University, revised Jul 2013.
  7. Vincenzo Bove & Roberto Nisticò, 2014. "Coups d'état and Defense Spending: A Counterfactual Analysis," CSEF Working Papers, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy 366, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
  8. d'Agostino, Giorgio & Dunne, John Paul & Pieroni, Luca, 2013. "Military Expenditure, Endogeneity and Economic Growth," MPRA Paper 45640, University Library of Munich, Germany.

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