Democracy and Militarization in Developing Countries: A Panel Vector Autoregressive Analysis

Sajjad F. Dizaji () and Mohammad Reza Farzanegan ()
Additional contact information
Sajjad F. Dizaji: Tarbiat Modares University

MAGKS Papers on Economics from Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung)

Abstract: This study examines the dynamic relationship between democracy and the military in more than 40 developing countries from 1990 to 2017. We investigate the dynamic interaction between democracy and military institutions using a panel vector autoregressive model and impulse response functions as well as variance decomposition analyses. We show that democracy plays a significant role in the substitution of nonmilitary expenditures for defense expenditures. We also investigate the response of democracy to positive shocks in military and nonmilitary spending. We find that the responses of political system and different indexes of democracy including electoral, liberal, participatory, deliberative, and egalitarian democracy to positive shocks in military expenditures are negative and significant, whereas their responses to the shocks in nonmilitary expenditures are not significant. This result suggests that the political behavior of governments in developing countries is influenced more heavily by their spending on the military sector than by their spending on the nonmilitary sector.

Keywords: democracy; military spending; panel VAR model; developing countries (search for similar items in EconPapers)
Pages: 29 pages
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Forthcoming in

Downloads: (external link)
https://www.uni-marburg.de/en/fb02/research-groups ... s/35-2020_dizaji.pdf First 202035 (application/pdf)

Related works:
Journal Article: Democracy and Militarization in Developing Countries: A Panel Vector Autoregressive Analysis (2023)
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:mar:magkse:202035

Access Statistics for this paper

More papers in MAGKS Papers on Economics from Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung) Contact information at EDIRC.
Bibliographic data for series maintained by Bernd Hayo ().