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Military Expenditures and Political Regimes: An Analysis Using Global Data, 1963-2001

Author

Listed:
  • Unal Tongur

    () (Department of Economics, METU)

  • Sara Hsu

    () (State University of New York at New Paltz, USA)

  • Adem Yavuz Elveren

    () (Department of Economics, METU and Sutcu Imam University)

Abstract

This paper examines the determinants of military expenditures with a special focus on political regimes for more than 130 countries for the period of 1963-2001 by employing a dynamic panel data analysis. The paper aims at contributing to the literature by utilizing a recently constructed political regimes data set and considering income inequality, a key variable that has not received substantial attention in the context of political regimes, growth and military expenditures. Covering a large set of countries and an extended time period, the paper reveals further evidence on the linkage between democracy and military expenditures. Our results yield two crucial facts. First, social democratic political regimes have a tendency to spend less on armaments as a share of the national income; compared to social democracy all other political regimes are likely to have higher military burdens, confirming previous findings of the negative relationship between level of democracy and military burden. Second, the analysis shows that higher income inequality, regardless of the model specification and inequality measure, is associated with lower military burden.

Suggested Citation

  • Unal Tongur & Sara Hsu & Adem Yavuz Elveren, 2013. "Military Expenditures and Political Regimes: An Analysis Using Global Data, 1963-2001," ERC Working Papers 1307, ERC - Economic Research Center, Middle East Technical University, revised Jul 2013.
  • Handle: RePEc:met:wpaper:1307
    as

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    File URL: http://www.erc.metu.edu.tr/menu/series13/1307.pdf
    File Function: First version, 2013
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    References listed on IDEAS

    as
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    Cited by:

    1. Töngür, Ünal & Hsu, Sara & Elveren, Adem Yavuz, 2015. "Military expenditures and political regimes: Evidence from global data, 1963–2000," Economic Modelling, Elsevier, vol. 44(C), pages 68-79.

    More about this item

    Keywords

    Military expenditure; income inequality; terror; political regime; democracy; dictatorship;

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War

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