STRUCTURAL BREAKS IN MILITARY EXPENDITURES: EVIDENCE FOR EGYPT, ISRAEL,JORDAN AND SYRIA

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

No 704, Working Papers from Ben-Gurion University of the Negev, Department of Economics

Abstract: This paper endogenously determines the timing of structural breaks in military expenditures and military burdens for the major parties involved in the Israeli-Arab conflict, namely Egypt, Israel, Jordan, and Syria over the period 1960-2004. Utilizing a test proposed by Vogelsang (1997), we find that all these countries experienced structural breaks, though at different periods in the late 70s and during the 80s. These structural breaks mark a sharp decline in the military burden that can be attributed to the peace talks that were initiated shortly after the 1973 war. When applying the Bai and Perron (1998, 2003) multiple structural break tests we detect two structural breaks for every country. The first break occurred during the 60s and demonstrated a significant rise in the military burden prior to the 1973 war, whereas the second break occurred in the late 70s and during the 80s and was characterized by a sharp decline in the military burden following the instigation of peace negotiations.

Keywords: Military Expenditures; Military Burden; Middle-East; Israeli-Arab Conflict; Structural Breaks. (search for similar items in EconPapers)
JEL-codes: C22 H56 O53 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Journal Article: Structural Breaks in Military Expenditures: Evidence for Egypt, Israel, Jordan and Syria (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:bgu:wpaper:0704

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