The Demand for Military Expenditure in Developing Countries: Hostility versus Capability

John Dunne (), Samuel Mordecai Perlo-Freeman () and Ronald Smith ()

No 707, Discussion Papers from University of the West of England, Department of Economics

Abstract: This paper has considers the interpretation of the empirical results of the developing literature on the demand for military spending that specifies a general model with arms race and spillover effects and estimates it on cross-section and panel data. It questions whether it is meaningful to talk of an ‘arms race’ in panel data or cross-section data, and suggests that it may be more appropriate to talk about the relevant variables – aggregate military spending of the ‘Security Web’ (i.e. all neighbours and other security-influencing powers) and the aggregate military spending of ‘Potential Enemies’– as acting as proxies for threat perceptions, which will reflect both hostility and capability.

Keywords: Military Spending; Developing Countries; Demand. (search for similar items in EconPapers)
JEL-codes: H56 C33 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev and nep-pke
Date: 2007-06
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http://carecon.org.uk/DPs/0707.pdf First version, 2007 (application/pdf)

Related works:
Journal Article: THE DEMAND FOR MILITARY EXPENDITURE IN DEVELOPING COUNTRIES: HOSTILITY VERSUS CAPABILITY (2008)
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Persistent link: http://EconPapers.repec.org/RePEc:uwe:wpaper:0707

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