Nonlinear Dynamics of Militarization and Income Inequality Nexus in Post-Socialist Eastern Europe: A Panel Kink Regression Analysis (1990–2023)

Dimitraki Ourania () and Emmanouilidis Kyriakos ()
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Dimitraki Ourania: Graduate School of Business, 5195 University of Bedfordshire , Luton, UK
Emmanouilidis Kyriakos: Business Administration and Economics Department, University of York City College Europe Campus, Thessaloniki, Greece

Peace Economics, Peace Science, and Public Policy, 2025, vol. 31, issue 3, 323-335

Abstract: This paper examines the relationship between militarization, and income inequality in Eastern Bloc European countries from 1990 to 2023 – a period marked by post-socialist transition, economic upheaval, and political instability. The region’s unique geopolitical position and complex socio-political structure have contributed to widening socioeconomic disparities and rising militarization. Using a panel kink regression (PKR) model with the Global Militarisation Index and GINI index, we identify a critical threshold beyond which militarisation’s effect on inequality reverses. Below this point, militarization modestly reduces inequality; above it, further increases worsen disparities. These findings underline the need for balanced policies that promote both security and social equity in the region.

Keywords: militarization; income inequality; panel kink regression; Eastern Bloc (search for similar items in EconPapers)
JEL-codes: C23 D73 H5 H56 O15 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1515/peps-2025-0042

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