ON THE DYNAMICS OF THE ISRAELI-ARAB ARMS RACE

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

No 809, Working Papers from Ben-Gurion University of the Negev, Department of Economics

Abstract: This paper investigates the causal relationships between the military expenditures and military burden of the four major sides of the Israeli-Arab conflict, namely, Egypt, Israel, Jordan and Syria over the period 1960-2004. We utilize both the causality test suggested by Toda and Yamamoto (1995) and the generalized forecast error variance decomposition method of Pesaran and Shin (1998). Our findings suggest weak causality that runs usually from Israel’s to Arab’s military spending. The strongest links are between Israel and Syria that are still in a state of enmity. No causality was detected between Israel’s and Jordan’s military spending.

Keywords: Arms race; Middle East; Israeli-Arab conflict; Causality; Generalized Forecast Error Variance Decomposition (search for similar items in EconPapers)
JEL-codes: D74 H56 O53 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Journal Article: On the dynamics of the Israeli-Arab arms race (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:bgu:wpaper:0809

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