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Nonlinear Dynamics of Militarization and Income Inequality Nexus in Post-Socialist Eastern Europe: A Panel Kink Regression Analysis (1990–2023)

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  • Dimitraki Ourania

    (Graduate School of Business, 5195 University of Bedfordshire , Luton, UK)

  • Emmanouilidis Kyriakos

    (Business Administration and Economics Department, University of York City College Europe Campus, Thessaloniki, Greece)

Abstract

This paper examines the relationship between militarization, and income inequality in Eastern Bloc European countries from 1990 to 2023 – a period marked by post-socialist transition, economic upheaval, and political instability. The region’s unique geopolitical position and complex socio-political structure have contributed to widening socioeconomic disparities and rising militarization. Using a panel kink regression (PKR) model with the Global Militarisation Index and GINI index, we identify a critical threshold beyond which militarisation’s effect on inequality reverses. Below this point, militarization modestly reduces inequality; above it, further increases worsen disparities. These findings underline the need for balanced policies that promote both security and social equity in the region.

Suggested Citation

  • Dimitraki Ourania & Emmanouilidis Kyriakos, 2025. "Nonlinear Dynamics of Militarization and Income Inequality Nexus in Post-Socialist Eastern Europe: A Panel Kink Regression Analysis (1990–2023)," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 31(3), pages 323-335.
    • Handle: RePEc:bpj:pepspp:v:31:y:2025:i:3:p:323-335:n:1004
    DOI: 10.1515/peps-2025-0042
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    Keywords

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    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption

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