The Demand for Military Spending in Egypt

Aamer Abu-Qarn (), John Dunne, Yasmine Abdelfattah and Shadwa Zaher
Additional contact information
Yasmine Abdelfattah: Department of Economics, British University in Egypt
Shadwa Zaher: Department of Economics, British University in Egypt

No 1001, Working Papers from Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol

Abstract: Egypt plays a pivotal role in the security of the Middle East as the doorway to Europe and its military expenditure reflects its involvement in the machinations of such an unstable region, showing considerable variation over the last forty years. These characteristics make it a particularly interesting case study of the determinants of military spending. This paper presents such a study, estimating an econometric model of the Egyptian demand for military spending, taking into account important strategic and political factors. Both economic and strategic factors are found to play a role in determining military burden, with clear positive effects of lagged military burden, suggesting some sort of institutional inertia, plus negative output and net imports effects. The main strategic effect is the impact of Israel’s military burden, with no effect for that of the Jordanian and Syrian allies, but the results also suggest that simple arms race relationships are not an adequate representation of the relevant strategic factors.

Keywords: Egypt; demand for military expenditure; political determinants; strategic determinants (search for similar items in EconPapers)
JEL-codes: H56 O53 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2010-01
New Economics Papers: this item is included in nep-ara, nep-cwa and nep-his
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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http://carecon.org.uk/DPs/1001.pdf First version, 2010 (application/pdf)

Related works:
Journal Article: The Demand for Military Spending in Egypt (2014)
Working Paper: The Demand for Military Spending in Egypt (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:uwe:wpaper:1001

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