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Middle Powers And The Demand For Military Expenditures

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  • Mohamed Douch
  • Binyam Solomon

Abstract

This paper identifies and classifies middle power nations through the use of broad political science definitions, the demand for military expenditures models and gross domestic product (GDP) per capita. The latter is used as a simple quantifiable measure of relative and potential military power. The paper also develops and utilizes a threat variable that is applicable to middle power nations. The panel data analysis shows that the middle power nations react to threat variables that proxy global instability utilize foreign aid as a complementary policy tool along with military expenditures, and face significant trade-offs between military and non-military government spending.

Suggested Citation

  • Mohamed Douch & Binyam Solomon, 2014. "Middle Powers And The Demand For Military Expenditures," Defence and Peace Economics, Taylor & Francis Journals, vol. 25(6), pages 605-618, December.
    • Handle: RePEc:taf:defpea:v:25:y:2014:i:6:p:605-618
    DOI: 10.1080/10242694.2013.861652
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    References listed on IDEAS

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    1. Breitung, Jörg & Pesaran, Mohammad Hashem, 2005. "Unit roots and cointegration in panels," Discussion Paper Series 1: Economic Studies 2005,42, Deutsche Bundesbank.
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    Cited by:

    1. Justin George & Todd Sandler, 2021. "EU Demand for Defense, 1990–2019: A Strategic Spatial Approach," Games, MDPI, vol. 12(1), pages 1-18, February.
    2. Douch Mohamed & Solomon Binyam, 2018. "Status or Security: The Case of the Middle East and North Africa Region," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 24(3), pages 1-12, September.
    3. Wukki Kim & Todd Sandler & Hirofumi Shimizu, 2024. "An expanded investigation of alliance security free riding," Global Policy, London School of Economics and Political Science, vol. 15(4), pages 570-582, September.
    4. Karl Skogstad, 2016. "Defence budgets in the post-Cold War era: a spatial econometrics approach," Defence and Peace Economics, Taylor & Francis Journals, vol. 27(3), pages 323-352, June.
    5. Rafał Woźniak & Jacek Lewkowicz, 2023. "Can We Have More Butter and Guns Simultaneously? An Endogeneity Perspective," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 2, pages 28-46.
    6. Christos Kollias & Paschalis Arvanitidis, 2018. "Phases of Imitation and Innovation in a North-South Endogenous Growth Model," Working Papers 1001, European Centre of Peace Science, Integration and Cooperation (CESPIC), Catholic University 'Our Lady of Good Counsel'.
    7. Douch, Mohamed & Solomon, Binyam, 2017. "Demand for Military Spending: The case of the MENA Region," MPRA Paper 88689, University Library of Munich, Germany.
    8. Justin George & Todd Sandler, 2024. "A spatial analysis of NATO burden sharing at the operational levels," Kyklos, Wiley Blackwell, vol. 77(4), pages 1026-1047, November.
    9. Mohamed Douch & Binyam Solomon, 2016. "A dynamic panel analysis using SIPRI’s extended military expenditure data: The case of Middle Power nations," Economics of Peace and Security Journal, EPS Publishing, vol. 11(2), pages 45-49, October.
    10. Jamil Sayeed & Deen Islam, 2025. "International Transmission of Fiscal News Shock: Evidence from Defense Spending," Defence and Peace Economics, Taylor & Francis Journals, vol. 36(1), pages 126-140, January.
    11. George, Justin & Sandler, Todd, 2018. "Demand for military spending in NATO, 1968–2015: A spatial panel approach," European Journal of Political Economy, Elsevier, vol. 53(C), pages 222-236.
    12. Bilin Neyapti, 2017. "Educate or Adjudicate? Socioeconomic Heterogeneity and Welfare," Defence and Peace Economics, Taylor & Francis Journals, vol. 28(5), pages 491-510, September.
    13. Christos Kollias & Suzanna-Maria Paleologou & Andreas Stergiou, 2016. "Military expenditure in Greece: Security challenges and economic constraints," Economics of Peace and Security Journal, EPS Publishing, vol. 11(1), pages 28-34, April.
    14. Woźniak, Rafał & Lewkowicz, Jacek, . "Czy wzrost gospodarczy i wyższe wydatki na wojsko są możliwe jednocześnie? Perspektywa endogeniczności," Gospodarka Narodowa-The Polish Journal of Economics, Szkoła Główna Handlowa w Warszawie / SGH Warsaw School of Economics, vol. 2023(2).
    15. Tobias Börger & Tim Lohse & Jürgen Meyerhoff & Salmai Qari, 2025. "Threat Perceptions and the Valuation of Defence Policy Instruments," CESifo Working Paper Series 11976, CESifo.

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