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The Demand For Military Expenditure In Developing Countries: Hostility Versus Capability

  • J. Paul Dunne
  • Sam Perlo-Freeman
  • Ron Smith

This paper 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 spill-over 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://www.tandfonline.com/doi/abs/10.1080/10242690802166566
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Article provided by Taylor & Francis Journals in its journal Defence and Peace Economics.

Volume (Year): 19 (2008)
Issue (Month): 4 ()
Pages: 293-302

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Handle: RePEc:taf:defpea:v:19:y:2008:i:4:p:293-302
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  1. Ron Smith & Martin Sola & Fabio Spagnolo, 2000. "The Prisoner's Dilemma and Regime-Switching in the Greek-Turkish Arms Race," Journal of Peace Research, Peace Research Institute Oslo, vol. 37(6), pages 737-750, November.
  2. James Murdoch & Todd Sandler, 2002. "Civil wars and economic growth: A regional comparison," Defence and Peace Economics, Taylor & Francis Journals, vol. 13(6), pages 451-464.
  3. 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.
  4. Yasmine M. Abdelfattah & Aamer S. Abu-Qarn & J. Paul Dunne & Shadwa Zaher, 2014. "The Demand for Military Spending in Egypt," Defence and Peace Economics, Taylor & Francis Journals, vol. 25(3), pages 231-245, June.
  5. Collier, Paul & Hoeffler, Anke, 2002. "Military expenditure - threats, aid, and arms races," Policy Research Working Paper Series 2927, The World Bank.
  6. Dunne, J. Paul & Smith, Ron P., 2007. "The Econometrics of Military Arms Races," Handbook of Defense Economics, Elsevier.
  7. Solomon Polachek & Carlos Seiglie & Jun Xiang, 2005. "Globalization and International Conflict: Can FDI Increase Peace?," Working Papers Rutgers University, Newark 2005-004, Department of Economics, Rutgers University, Newark.
  8. Paul Dunne & Sam Perlo-Freeman, 2003. "The Demand for Military Spending in Developing Countries," International Review of Applied Economics, Taylor & Francis Journals, vol. 17(1), pages 23-48.
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