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Divergence and club convergence in NATO

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  • Yasin Kutuk

    (Altınbaş University)

Abstract

This study examines whether there is convergence in military expenditures among NATO countries by using Philips and Sul (Econometrica 75:1771–1855, 2007) convergence methodology. We obtained the primary dataset of 27 NATO member countries between 2009 and 2021 for their military expenditures to accomplish this. The results show no convergence between the military expenditures of NATO member states. In addition, although these 27 member countries are divergent, the analysis also identified three convergent clubs among NATO members with exciting patterns and trends in their military expenditures.

Suggested Citation

  • Yasin Kutuk, 2024. "Divergence and club convergence in NATO," Empirical Economics, Springer, vol. 66(3), pages 1013-1035, March.
    • Handle: RePEc:spr:empeco:v:66:y:2024:i:3:d:10.1007_s00181-023-02486-8
    DOI: 10.1007/s00181-023-02486-8
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