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Country survey military expenditure in Cyprus

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  • Christos Kollias

Abstract

Cyprus, a small island state, gained independence from British colonial rule in 1960. For more that half its history as an independent state Cyprus has been under occupation following the 1974 Turkish invasion. Despite the fact that it has faced war, invasion and occupation, Cyprus has allocated a comparatively small proportion of its national income to defence. The average defence burden—military expenditure as a share of GDP—during 1964-98 was around 2.5%. However, as a result of a substantial shift in defence policy during the past decade or so, the defence burden during the 1990s has increased, averaging about 4% of GDP as Cyprus decided to implement an extensive military modernization program aiming to present a more credible military deterrence vis-a-vis Turkey. Empirical estimations of a demand function for Cypriot military expenditure suggest that it is positively affected by alliance spillins and external military threat.

Suggested Citation

  • Christos Kollias, 2001. "Country survey military expenditure in Cyprus," Defence and Peace Economics, Taylor & Francis Journals, vol. 12(6), pages 589-607.
    • Handle: RePEc:taf:defpea:v:12:y:2001:i:6:p:589-607
    DOI: 10.1080/10430710108405004
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    References listed on IDEAS

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    1. Keith Hartley & Todd Sandler (ed.), 1995. "Handbook of Defense Economics," Handbook of Defense Economics, Elsevier, edition 1, volume 1, number 1.
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    Cited by:

    1. Christos Kollias & Suzanna-Maria Paleologou, 2003. "Domestic political and external security determinants of the demand for greek military expenditure," Defence and Peace Economics, Taylor & Francis Journals, vol. 14(6), pages 437-445.
    2. Christos Kollias & Suzanna-Maria Paleologou, 2011. "The Macroeconomic Effects of Conflict: Three Case Studies," Chapters, in: Derek L. Braddon & Keith Hartley (ed.), Handbook on the Economics of Conflict, chapter 14, Edward Elgar Publishing.
    3. Carlos Pestana Barros, 2016. "Country survey: Angola," Defence and Peace Economics, Taylor & Francis Journals, vol. 27(3), pages 423-432, June.

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