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The demand for military spending in developing countries: A dynamic panel analysis

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  • J. Paul Dunne
  • Sam Perlo-Freeman

Abstract

Estimating demand functions for developing countries before and after the end of the Cold War, Dunne and Perlo-Freeman (2003) found little evidence of any change in the underlying relationship. One concern with their analysis was that the use of cross-section averages might have obscured important time series effects. This paper deals with this issue by analysing their data using static and dynamic panel data methods. This produces evidence of a change in relationship and suggests that the focus in the literature on cross-section analyses has indeed limited our understanding of important dynamic processes at work within countries.

Suggested Citation

  • 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, vol. 14(6), pages 461-474.
    • Handle: RePEc:taf:defpea:v:14:y:2003:i:6:p:461-474
    DOI: 10.1080/1024269032000085224
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    References listed on IDEAS

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