IDEAS home Printed from https://ideas.repec.org/a/taf/defpea/v31y2020i5p517-531.html
   My bibliography  Save this article

Economic, Security, and Political Determinants of Military Spending in NATO Countries

Author

Listed:
  • Jakub Odehnal
  • Jiří Neubauer

Abstract

The article deals with an empirical investigation of the determinants of military expenditures of selected NATO countries. Economic, security, and political determinants were analysed by means of panel models. In order to analyse the economic environment as a determinant of military expenditure, the following variables were applied: Risk of Budget Balance, Risk of Foreign Debt, Risk of Inflation, Risk of GDP per Capita, Risk of GDP Growth, and a control variable, Risk of Current Account as a percentage of GDP. The following variables were employed for the security risk analysis: Terrorism, Cross Border Conflict, Ethnic Tension, and Foreign Pressures. A variable evaluating the Democratic Accountability and a control variable Government Stability were selected to analyse political risks. The results show serious inconsistencies in factors affecting the military expenditures of traditional and new NATO member countries.

Suggested Citation

  • Jakub Odehnal & Jiří Neubauer, 2020. "Economic, Security, and Political Determinants of Military Spending in NATO Countries," Defence and Peace Economics, Taylor & Francis Journals, vol. 31(5), pages 517-531, July.
    • Handle: RePEc:taf:defpea:v:31:y:2020:i:5:p:517-531
    DOI: 10.1080/10242694.2018.1544440
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/10242694.2018.1544440
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/10242694.2018.1544440?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Albalate, Daniel & Bel, Germà & Elias, Ferran, 2012. "Institutional determinants of military spending," Journal of Comparative Economics, Elsevier, vol. 40(2), pages 279-290.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.
    2. Minh Phuoc‐Bao Tran & Duc Hong Vo, 2024. "Can local and global geopolitical risk predict governments' military spending behaviour? International evidence," Scottish Journal of Political Economy, Scottish Economic Society, vol. 71(4), pages 588-603, 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. Joseph Keneck‐Massil & Iliassou Nkariepoun‐Njoya & Bernard Clery Nomo‐Beyala, 2024. "Does women's political empowerment matter in military spending?," Kyklos, Wiley Blackwell, vol. 77(2), pages 316-350, May.
    5. Jakub Odehnal & Jiří Neubauer & Lukáš Dyčka & Tereza Ambler, 2020. "Development of Military Spending Determinants in Baltic Countries—Empirical Analysis," Economies, MDPI, vol. 8(3), pages 1-18, August.
    6. Jakub Odehnal & Jiří Neubauer & Aleš Olejníček & Jana Boulaouad & Lenka Brizgalová, 2021. "Empirical Analysis of Military Expenditures in NATO Nations," Economies, MDPI, vol. 9(3), pages 1-15, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kiryl Rudy, 2022. "Military Economy and Economic Growth: Bidirectional Effects in Transition Economies of Eurasia," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 14(3), pages 285-300, September.
    2. Niklas Potrafke, 2012. "Political cycles and economic performance in OECD countries: empirical evidence from 1951–2006," Public Choice, Springer, vol. 150(1), pages 155-179, January.
    3. Giorgio d’Agostino & John Paul Dunne & Luca Pieroni, 2019. "Military Expenditure, Endogeneity and Economic Growth," Defence and Peace Economics, Taylor & Francis Journals, vol. 30(5), pages 509-524, July.
    4. Oasis Kodila-Tedika & Sherif Khalifa, 2021. "African Junta and Defence Spending: A Capture Effect or Self-preservation? [A Theory of Military Dictatorships]," Journal of African Economies, Centre for the Study of African Economies, vol. 30(3), pages 285-300.
    5. Albalate, Daniel & Bel, Germà & Mazaira-Font, Ferran A. & Ros-Oton, Xavier, 2024. "Paying for protection: bilateral trade with an alliance leader and defense spending of minor partners," Journal of Economic Behavior & Organization, Elsevier, vol. 223(C), pages 234-247.
    6. Christian Bjørnskov & Niklas Potrafke, 2012. "Political Ideology and Economic Freedom Across Canadian Provinces," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 38(2), pages 143-166.
    7. Saima Nawaz & Idrees Khawaja, 2020. "The Impact of Political Regime and Institutions on Government Size in Middle-Income Countries," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 59(2), pages 199-220.
    8. Olejnik, Łukasz Wiktor, 2024. "Left-wing butter vs. right-wing guns: Government ideology and disaggregated military expenditures," ZEW Discussion Papers 24-026, ZEW - Leibniz Centre for European Economic Research.
    9. Vincenzo Bove & Jennifer Brauner, 2016. "The demand for military expenditure in authoritarian regimes," Defence and Peace Economics, Taylor & Francis Journals, vol. 27(5), pages 609-625, September.
    10. Keisuke Okada & Sovannroeun Samreth, 2021. "Oil bonanza and the composition of government expenditure," Economics of Governance, Springer, vol. 22(1), pages 23-46, March.
    11. Una Hakvåg, 2017. "Russian defense spending after 2010: the interplay of personal, domestic, and foreign policy interests," Post-Soviet Affairs, Taylor & Francis Journals, vol. 33(6), pages 496-510, November.
    12. Artis, Michael & Moreno, Rosina & Miguelez, Ernest, 2009. "Assessing agglomeration economies in a spatial framework with endogenous regressors," CEPR Discussion Papers 7267, C.E.P.R. Discussion Papers.
    13. Bove, Vincenzo & Efthyvoulou, Georgios & Navas, Antonio, 2017. "Political cycles in public expenditure: butter vs guns," Journal of Comparative Economics, Elsevier, vol. 45(3), pages 582-604.
    14. Joseph Keneck‐Massil & Iliassou Nkariepoun‐Njoya & Bernard Clery Nomo‐Beyala, 2024. "Does women's political empowerment matter in military spending?," Kyklos, Wiley Blackwell, vol. 77(2), pages 316-350, May.
    15. Kimbambu Tsasa Vangu, Jean - Paul, 2012. "Analyse de la Relation Guerres Civiles et Croissance Économique [Civil Wars and Economic Growth in DRC]," MPRA Paper 42424, University Library of Munich, Germany, revised 05 Feb 2012.
    16. Mohammad Reza Farzanegan & Hassan F. Gholipour, 2021. "Growing up in the Iran–Iraq war and preferences for strong defense," Review of Development Economics, Wiley Blackwell, vol. 25(4), pages 1945-1968, November.
    17. Niklas Potrafke, 2011. "Does government ideology influence budget composition? Empirical evidence from OECD countries," Economics of Governance, Springer, vol. 12(2), pages 101-134, June.
    18. Usman Khalid & Luke Emeka Okafor & Nusrate Aziz, 2020. "Armed conflict, military expenditure and international tourism," Tourism Economics, , vol. 26(4), pages 555-577, June.
    19. Chletsos Michael & Roupakias Stelios, 2020. "The effect of military spending on income inequality: evidence from NATO countries," Empirical Economics, Springer, vol. 58(3), pages 1305-1337, March.
    20. Potrafke, Niklas, 2010. "The growth of public health expenditures in OECD countries: Do government ideology and electoral motives matter?," Journal of Health Economics, Elsevier, vol. 29(6), pages 797-810, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:defpea:v:31:y:2020:i:5:p:517-531. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/GDPE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.