Better is the Neighbor?

Tie-Ying Liu, Chi-Wei Su, Ran Tao and Han Cong

Defence and Peace Economics, 2019, vol. 30, issue 6, 706-718

Abstract: This study applies the Sequential Panel Selection Method (SPSM), to investigate the convergence properties of the military expenditure of the North Atlantic Treaty Organization (NATO) during the period of 1990–2015. Compared to the traditional methods, SPSM considers fundamentally general spatial homogeneous and heterogeneous relationships with countries and examines the evolution of military expenditure. We find that four-fifths of NATO member countries have been convergent with the UK, but no country’s military expenditure is convergent with the US. This means that there is no significant linkage effect in the US for NATO military expenditure. While they are allies of the US, the majority of NATO member countries’ military expenditures are consistent with UK military expenditure. The main reasons are due to the geographical space layout and the international relationship convergence. The results indicate that more than four-fifths of NATO member countries have been coordinated with convergence theory and spillover effect.

Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://hdl.handle.net/10.1080/10242694.2017.1422321 (text/html)
Access to full text is restricted to subscribers.

Related works:
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:taf:defpea:v:30:y:2019:i:6:p:706-718

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/GDPE20

DOI: 10.1080/10242694.2017.1422321

Access Statistics for this article

Defence and Peace Economics is currently edited by Professor Keith Hartley

More articles in Defence and Peace Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().