Economic versus strategic constraints: the asymmetric behaviour of defense spending in France

Julien Malizard and Josselin Droff ()
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Josselin Droff: AMURE - Aménagement des Usages des Ressources et des Espaces marins et littoraux - Centre de droit et d'économie de la mer - IFREMER - Institut Français de Recherche pour l'Exploitation de la Mer - UBO - Université de Brest - IUEM - Institut Universitaire Européen de la Mer - IRD - Institut de Recherche pour le Développement - INSU - CNRS - Institut national des sciences de l'Univers - UBO - Université de Brest - CNRS - Centre National de la Recherche Scientifique - CNRS - Centre National de la Recherche Scientifique, CRF - Centre de recherche sur la formation - CNAM - Conservatoire National des Arts et Métiers [CNAM] - ENSTA Bretagne - École Nationale Supérieure de Techniques Avancées Bretagne

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Abstract: This article examines the main drivers of French defense expenditure between 1960 and 2010. France has to balance with two contradictory issues: strategic constraint and budgetary process. We assume that nonlinear approach is suitable to evaluate the demand function. Our results support latter assumption and we use time trend as transition function. Economic factors play a major role and considering the nonlinear pattern, we show that, before 1983, economic growth is inversely related to defense expenditure whereas the opposite arises after this threshold. Strategic considerations exert a little impact.

Keywords: Military expenditure; France; Demand function; LSTR modelling (search for similar items in EconPapers)
Date: 2014-06-16
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Published in 63rd annual meeting of French Economics Association, AFSE, Jun 2014, Lyon, France

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01018780

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