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Defence budgets in the post-Cold War era: a spatial econometrics approach

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  • Karl Skogstad

Abstract

This paper examines the determinants of national defence budgets in the post-Cold War era employing a spatial econometric framework. Using data for 124 countries over a 16-year time period, I examine spatial relationships in defence spending to investigate how countries account for the military spending of other countries when setting their budgets. Using specially developed weighting matrices, the regression results indicate that defence budgets are positively spatially correlated. These results provide support for the use of ‘external’ factors when examining defence budgets over this time period. The importance of a country’s spatial location when setting its budget is further examined through the identification of regions of high and low defence spending.

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  • 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.
    • Handle: RePEc:taf:defpea:v:27:y:2016:i:3:p:323-352
    DOI: 10.1080/10242694.2015.1034911
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    Cited by:

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    3. Johannes Blum, 2020. "Democracy’s Third Wave and National Defense Spending," ifo Working Paper Series 339, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    4. Jie Liu & Chao Bi, 2019. "Effects of Higher Education Levels on Total Factor Productivity Growth," Sustainability, MDPI, vol. 11(6), pages 1-12, March.
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    6. Nusrate Aziz & M. Niaz Asadullah, 2017. "Military spending, armed conflict and economic growth in developing countries in the post-Cold War era," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 44(1), pages 47-68, January.
    7. Justin George & Todd Sandler, 2022. "NATO defense demand, free riding, and the Russo-Ukrainian war in 2022," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 49(4), pages 783-806, December.

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    More about this item

    JEL classification:

    • F52 - International Economics - - International Relations, National Security, and International Political Economy - - - National Security; Economic Nationalism
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War

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