The Demand for Military Spending in Egypt

Aamer Abu-Qarn (), Yasmine Abdelfattah (), John Dunne and Shadwa Zaher
Additional contact information
Shadwa Zaher: British University in Egypt

No 1210, Working Papers from Ben-Gurion University of the Negev, Department of Economics

Abstract: Egypt plays a pivotal role in the security of the Middle East as the doorway to Europe and its military expenditure reflects its involvement in the machinations of such an unstable region, showing considerable variation over the last forty years. These characteristics make it a particularly interesting case study of the determinants of military spending. This paper specifies and estimates an econometric model of the Egyptian demand for military spending, taking into account important strategic and political factors. Both economic and strategic factors are found to play a role in determining military burden/spending, with clear positive effects of lagged military burden, suggesting some sort of institutional inertia, plus negative output and net exports effects. The strategic effect as a result of the impact of Israel’s military burden is mostly positive and significant, though its impact is reduced when the impact of important strategic events are taken into account. The military spending of Egypt’s allies Jordan and Syria generally seems to have had no effect on Egypt’s spending. These results are consistent over a range of econometric techniques.

Keywords: Egypt; demand for military expenditure; political determinants; strategic determinants; cointegration (search for similar items in EconPapers)
JEL-codes: H56 O53 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2012
New Economics Papers: this item is included in nep-ara and nep-pol
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://in.bgu.ac.il/en/humsos/Econ/Workingpapers/1210.pdf (application/pdf)

Related works:
Journal Article: The Demand for Military Spending in Egypt (2014)
Working Paper: The Demand for Military Spending in Egypt (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bgu:wpaper:1210

Access Statistics for this paper

More papers in Working Papers from Ben-Gurion University of the Negev, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Aamer Abu-Qarn ().