EconPapers    
Economics at your fingertips  
 

On the dynamics of the Israeli-Arab arms race

Aamer S. Abu-Qarn () and Suleiman Abu-Bader ()

The Quarterly Review of Economics and Finance, 2009, vol. 49, issue 3, pages 931-943

Abstract: This article investigates the causal relationships between the military expenditures and military burden of the four major sides of the Israeli-Arab conflict, namely, Egypt, Israel, Jordan and Syria over the period 1960-2004. We utilize both the causality test suggested by Toda and Yamamoto [Toda, H. Y., & Yamamoto, T. (1995). Statistical inference in vector autoregressions with possibly integrated processes. Journal of Econometrics, 66, 225-250] and the generalized forecast error variance decomposition method of [Pesaran, M. H., & Shin, Y. (1998). Generalized impulse response analysis in linear multivariate models. Economics Letters, 58, 17-29]. Our findings suggest weak causality that runs usually from Israel's to Arab's military spending. The strongest links are between Israel and Syria that are still in a state of enmity. No causality was detected between Israel's and Jordan's military spending.

Keywords: Arms; race; Middle; East; Israeli-Arab; conflict; Causality; Generalized; forecast; error; variance; decomposition (search for similar items in EconPapers)
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/B6W5X ... 9b7aec9f509f95a1dc4c
Full text for ScienceDirect subscribers only

Related works:
Working Paper: ON THE DYNAMICS OF THE ISRAELI-ARAB ARMS RACE (2008) Downloads
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: http://EconPapers.repec.org/RePEc:eee:quaeco:v:49:y:2009:i:3:p:931-943

Access Statistics for this article

The Quarterly Review of Economics and Finance is currently edited by R. J. Arnould and J. E. Finnerty

More articles in The Quarterly Review of Economics and Finance from Elsevier
Series data maintained by Zhang, Lei ().

 
Page updated 2014-11-05
Handle: RePEc:eee:quaeco:v:49:y:2009:i:3:p:931-943