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Global Arms Trade and Oil Dependence

Author

Listed:
  • Vincenzo Bove

    (University of Warwick)

  • Claudio Deiana

    (University of Essex)

  • Roberto Nisticò

    (Università di Napoli Federico II and CSEF)

Abstract

We provide novel empirical models of the arms trade and focus on the role of energy dependence, in particular of oil, in explaining the trade of weapons between countries. Dramatic geopolitical events such as wars can cause significant disruptions in the supply of oil and increase oil prices. Oil-dependent economies have therefore incentives to provide security by selling or giving away arms to oil-rich countries and reduce the risk of instability. We find strong empirical support for this claim using data on international transfers of major weapons and information on global and local oil dependence, oil reserves and oil discoveries.

Suggested Citation

  • Vincenzo Bove & Claudio Deiana & Roberto Nisticò, 2016. "Global Arms Trade and Oil Dependence," CSEF Working Papers 452, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy, revised 10 Feb 2018.
  • Handle: RePEc:sef:csefwp:452
    Note: A former version of this paper was circulated under the title "Energy (in)security and the Arms Trade"
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    References listed on IDEAS

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    Cited by:

    1. Raul Caruso & Adelaide Baronchelli & Roberto Ricciuti, 2020. "Trade in Small Arms and Light Weapons. Are embargoes effective?," Working Papers 1009, European Centre of Peace Science, Integration and Cooperation (CESPIC), Catholic University 'Our Lady of Good Counsel'.
    2. Callado-Muñoz Francisco J. & Hromcová Jana & Utrero-González Natalia, 2019. "Trade and Military Alliances: Evidence from NATO," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 25(4), pages 1-8, December.
    3. Kodila-Tedika, Oasis & Khalifa, Sherif, 2020. "African Junta and Defense Spending: A Capture Effect or Self-Preservation?," MPRA Paper 103599, University Library of Munich, Germany.
    4. Olaf J. de Groot & Carlos Bozzoli & Tilman Bruck, 2015. "The Global Economic Burden of Violent Conflict," HiCN Working Papers 199, Households in Conflict Network.
    5. Vezina,Pierre-Louis, 2020. "The Oil Nouveau-Riche and Arms Imports," Policy Research Working Paper Series 9374, The World Bank.

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    More about this item

    Keywords

    Arms Trade; Oil; Security;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F50 - International Economics - - International Relations, National Security, and International Political Economy - - - General
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • Q34 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Natural Resources and Domestic and International Conflicts

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