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This paper analyzes defense burden sharing and defense cooperation in the European Union. The efforts to build a common defense framework within the EU have significantly increased since the 2000s. However, figures seem to highlight a reversal in defense cooperation trends that may potentially jeopardize the EU common defense framework. The underlying cause can be attributed to the Russian invasion of Ukraine in 2014. In 2022, the recrudescence of war caused a disruption to which member states answered with an old-fashioned receipt, composed of higher military expenditure driven by increasing commitment in military equipment procurement, accompanied by decreasing defense cooperation. Data related to the participation in Permanent Structured Cooperation defense joint programs seem to empirically confirm this new trend, as well as the impact the conflict has had on defense burden sharing. Fragmentation thus appears to be growing and undoing the progress made. [ABSTRACT FROM AUTHOR]

In the last 10 years, military expenditures of NATO EU countries (according to NATO definitions and data) have increased by almost 50 %, from €145 billion in 2014 to €215 billion in 2023. In this context, it is important to assess the economic consequences that the current increase in military spending is likely to have on Europe's economies. We focus on Germany, Italy and Spain, and we concentrate on arms acquisitions. The article investigates the economic effect of military expenditure on growth and employment and compares it to the impact that could emerge from a similar expenditure for education, health and the environment. We use an input–output methodology – already adopted by several studies – to assess the relevance of imports and of demand towards different sectors providing intermediate inputs. We assess the likely impact on output and jobs of one billion euros of extra spending in arms, and compare it to the outcomes of the same amount spent in education, health and the environment. Our findings show that for all countries non-military public expenditures have a greater impact on the economy and employment than spending for arms acquisition. [ABSTRACT FROM AUTHOR]

This study aims to investigate the asymmetric effect of military expenditure on economic growth in Nigeria. Furthermore, it determines the threshold level of military expenditure that spurs or hinders economic growth in Nigeria. To achieve the study's objectives, the nonlinear autoregressive distributed lag (NARDL) and dynamic threshold autoregressive (TAR) techniques are applied as estimation techniques to data from 1981 to 2020. The findings from the study show that (1) positive shocks in military expenditure negatively impact economic growth in the short run, while the effect turns positive in the long run. (2) Negative military expenditure shocks negatively influenced economic growth in Nigeria in both periods. (3) The result from the threshold regression found a threshold value of 0.579 for military expenditure. Based on these findings, policymakers must consider the inherent tendency of asymmetry and nonlinearity in military expenditure when formulating policies related to government spending. [ABSTRACT FROM AUTHOR]

Copyright of World Affairs is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Purpose: Today, many industries are implementing creative approaches in response to increasing environmental awareness. It is of great importance to answer the question of whether the military sector, one of the most important sectors, can support renewable energy (RE) adaptation. This study aims to examine how military spending affects the supply of RE in 27 Organization for Economic Cooperation and Development (OECD) nations as well as the regulatory function of factors such as innovation, international trade and oil prices between 1990 and 2021. Design/methodology/approach: The study examines the effects of military spending, income, green innovation, international trade, oil prices and the human development index on the supply of RE using various econometric approaches, which are the cointegration test, moments quantile regression and robustness test. Findings: The findings demonstrate that all factors, excluding military spending, quite likely affect the expansion of the renewable supply. Military spending negatively influences the RE supply; specifically, a 1% increase in military spending results in a 0.88 reduction in the renewable supply. In addition, whereas income elasticity, trade and human development index in OECD nations are higher in the last quantiles of the regression than in the first quantiles, the influence of military spending and innovation on renewable supply is about the same in all quantiles. Practical implications: OECD nations must consider the practical implications, which are essential to assess and update the military spending of OECD countries from a green energy perspective to transition to clean energy. Based on the study's overall findings, the OECD countries should incorporate the advantages of innovation, economic growth and international trade into their clean energy transition strategies to lessen the impact of military spending on renewables. Originality/value: The study aims to fill a gap in the literature regarding the role of military expenditures in the RE development of an OECD country. In addition, the results of the methodological analysis can be used to guide policymakers on how military spending should be in the field of RE. [ABSTRACT FROM AUTHOR]

The paper presents evidence on the relationship concerning military spending among Southeast Mediterranean countries (Greece – Turkey, Israel – Egypt, Israel – Turkey) over the period 1962–2020. We account for the presence of nonlinearities in the bilateral relationships of defence spending by applying Threshold Autoregressive methodologies and utilize kink regression analysis to detect the existence of a country's military spending threshold that signals a threat to another country of the region. Our empirical results show: First, there is a nonlinear strategic interaction between the countries examined, in the sense that their defence spending policy is cointegrated. Second, there is no arms race among the countries examined, but only unilateral effects. Third, there is consistent evidence of a possible military spending equilibrium, in the absence of friction between the countries involved (peace threshold). Our findings have important policy implications as they indicate, first, that each country in the region should not determine its level of military spending considering only operational factors, but also considering the signaling of its military spending on its neighboring countries and, second, that there is space for peaceful solutions regarding disputes in the Southeast Mediterranean region. [ABSTRACT FROM AUTHOR]

This study investigates the relationship between political stability, military expenditure, and economic growth in Tanzania, from 2002 to 2022. The study uses the ARDL model due to its ability to handle variables with different orders of integration, its flexibility in capturing dynamic relationships, and its robustness in providing insights into both short-term and long-term interactions among variables. The ARDL bounds test has revealed the existence of cointegration, suggesting the presence of long-run relationships among variables. Moreover, the empirical results show that past GDP is positively related to current economic growth, while the effect of voice and accountability on economic growth remains statistically insignificant. Further, the effects of regulatory quality and the rule of law on economic growth exhibit mixed effects. Also, the individual effects of political stability and military expenditure on the economy remain positive and statistically significant. However, the interaction of political stability and military spending is negatively related with the current economic growth but positively correlated with economic growth in the long run. These findings underscore the imperative of political stability and strategic military expenditure as critical ingredients in generating sustainable economic growth in Tanzania. [ABSTRACT FROM AUTHOR]

We investigate the causes underlying the decline in the government expenditure multiplier after the Korean War, through the lens of a structural dynamic stochastic general equilibrium model. We estimate the model using Bayesian methods and annual frequency data from 1939 to 2017. The model replicates the observed fall in the expenditure multiplier. We find that the decline is accounted for by changes in two of the model's structural parameters, namely a decline in consumption habit persistence and a higher autocorrelation of the public expenditure processes. These changes imply a stronger negative wealth effect, a lower discretion of US fiscal policy and, consequently, a multiplier of smaller magnitude. The model identifies the news shocks to military spending, yet fiscal news plays little role in the decline of the multiplier. Rather, the news shocks account for an important fraction of medium-term variances of debt and military expenditures, which justifies their inclusion in the model. [ABSTRACT FROM AUTHOR]

The purpose of this investigation was to empirically assess the association between military expenditure and income inequality in the 19 European member states of NATO between 2011 and 2022. To achieve this, the authors carried out multivariate statistical analysis using Kaplan-Meier life tables and survival estimation techniques. The results highlighted a trend in the countries analysed that income inequality tended to decrease when investment in the military increased during the period under consideration. The association manifested itself in the shortest time in the group of countries with the lowest military spending per capita, while emerging in the longer term in the countries with the highest. Furthermore, under high threat of war, the association tends to be shortest in relative terms in countries with the lowest military expenditure per capita. The results also revealed that the association between military spending and income inequality is more pronounced in the smallest countries by population and those with the lowest military expenditure per capita. The authors believe that this investigation will enrich scientific knowledge with new insights. [ABSTRACT FROM AUTHOR]

Unquestionably, all countries prioritize maintaining peace and fostering long-term sustainable economic growth. For this purpose, this study assessed the impact of military expenditure on economic growth using a multivariate regression model based on the enhanced production function in the presence of energy consumption. The study clustered 48 Islamic countries into their income levels over the period from 1990 to 2018, and using the dynamic common corrected effects in determining the elasticities of the explanatory variables. The empirical results revealed a negative effect of military expenditure on economic growth and the elasticity of military expenditure to economic growth was lowest in upper-middle-income countries than in the other three groups. In the main panel a 1% increase in military expenditure led to a 0.101% decrease in economic growth. The results of the paired Dumitrescu Hurlin panel causality test revealed a bidirectional causal affiliation between economic growth and military expenditure. In addition, the empirical findings revealed that the levels of military expenditure, as a component of total government expenditure, are too high in the employed economies and need to be transferred toward more productive non-military expenditure in order to improve the economic growth performance and other growth determinants. [ABSTRACT FROM AUTHOR]

Purpose: This paper explores whether data back the claim that imports of armaments are inherently bad for economic growth. Regardless of one's point of view, the production and trade of weaponry is a significant industry with serious economic implications that warrant investigation. The financial repercussions of military spending have been extensively studied, but the economic effects of arms importation remain unknown. Design/methodology/approach: This study adopts a pooled mean group approach to investigate the nexus between arms imports, military expenditure and per capita GDP for a balanced panel of twenty-five of the top arms importers in the world from 2000 to 2021. Findings: The authors find that arms imports and military spending negatively impact GDP per capita in the short run, but military spending is beneficial over the long run. The authors also used the Dumitrescu Hurlin Granger causality test, which revealed a unidirectional causation between per capita GDP and military expenditure, and a unidirectional causal relationship from military spending to arms imports. Research limitations/implications: This paper is deficient in a few aspects: first, it looks at only those countries comprising the top 70% of arms imports. Second, it omits many political, technological and legal factors that impact arms imports and military expenditures. Originality/value: This paper looks into the impact of defense spending and arms imports on economic growth for twenty-five nations with the highest share of arms imports in recent times. It is a significant addition to the literature as it resolves the debate of whether or not the military expenditure is wasteful and whether arms imports significantly harm the nation's economic growth. [ABSTRACT FROM AUTHOR]

This paper study the effects of Thailand's 2014 military coup on Thailand's economy using the control method to create synthetic Thailand, which represents hypothetical Thailand had the 2014 coup not occurred. The empirical findings reveal no statistically significant effects on key economic variables such as gross domestic product, unemployment, military expenditure, and income inequality. Contrary to previous research, military expenditures did not increase following the coup. Supporters of the coup may interpret these results as evidence that the coup had no negative effects on the economy. At the same time, critics may argue that the coup did not lead to improved economic outcomes compared with the politically unstable precoup period, thus perpetuating a state of national stagnation. [ABSTRACT FROM AUTHOR]

The relationship between government defence expenditure and economic growth is a debated topic. This study uses UK data for the period of 1960–2012 and applies two of the most prevailing theories used within the literature, the 'Feder-Ram' and the 'augmented Solow' models, to assess this question. We utilise traditional model specifications, alongside extensively altered versions of both models, enabling a comprehensive comparison between them. The alterations to the models include re-evaluating how core variables are expressed, inclusion of measures of conflict, the impact of recession, etc. The results show that the augmented Solow model outperforms the Feder-Ram model, and we provide some explanations for this result. In addition, our results suggest that military expenditure has a positive effect on economic growth within the UK, implying that the decision to reduce defence spending may have been detrimental to the UK economy. [ABSTRACT FROM AUTHOR]

Why is it that some governments ending a civil war in a negotiated settlement succeed in reducing military spending while others fail? Civil wars ending in peace agreements result in relatively low military expenditures; however, not all governments succeed in the reduction. I argue that implementing a third-party verification mechanism of peace accords helps reduce military spending in post-conflict societies because the verification mechanism facilitates the peace accord implementation by enabling reciprocal implementation and by increasing the cost of noncompliance through active information flow. Implementation of peace agreements reduces threats posed by both former and outside rebel groups. This makes the government decrease the military expenditure allocated to appease internal security threats. I tested this argument using 32 civil wars with a comprehensive peace agreement between 1992 and 2011. The results indicate that initiating a verification mechanism leads to lower military spending. [ABSTRACT FROM AUTHOR]

This study has been carried out to identify the relationship between military expenditures (MILEX), energy consumption (FOSSIL), financial development (FD) and environmental pollution (CAFP) for G7 countries. Panel data analysis was conducted using annual data for the 1971–2019 period. The results revealed that military expenditures, financial development and energy consumption are long-term determinants of environmental pollution. The study also found that FD had the greatest long-term impact on CAFP followed by FOSSIL and MILEX in that order, and that this impact was statistically significant and positive for FOSSIL and FD and negative for MILEX. A country-by-country evaluation showed that the country in which financial development and energy consumption have the greatest impact on the amount of carbon released into the environment is the USA, while the country in which the impact of military expenditures on the amount of carbon released into the environment is greatest in Germany. [ABSTRACT FROM AUTHOR]

Following the rising wave of terrorism in Africa, particularly in the last decade, this study investigated the effect of terrorism on economic complexity in the region as well as the moderating role of military expenditure in the terrorism–economic complexity relationship. A panel of 34 African economies was used over the period 2010–2021. The study also used the dynamic system generalized method of moments framework. We find that the unconditional effect of terrorism on economic complexity in Africa is predominantly negative and significant, and that military expenditure in the region has been ineffective in moderating this adverse effect. This finding remained robust regardless of whether terrorism is measured by the number of terrorism incidents, fatalities, injuries, or hostages. However, our results showed that industrialization, urbanization, and governance institutional quality are potent channels for promoting economic complexity in Africa. Among others, the study emphasized the need for policymakers and leaders in Africa to collaborate at the level of the African Union to address the detrimental effects of terrorism on the continent. [ABSTRACT FROM AUTHOR]

This study examines the impact of armed conflicts on the fiscal capacity of African governments. It made use of a data set covering 1997–2021 for 50 countries, as well as the system dynamic generalized method of moment estimation technique. The results show that, in the short run, conflicts undermine tax revenue, mount pressure on military expenditure, and force governments to rely more on mineral resource rents for their fiscal needs. As conflicts persist, this fiscal feature changes to a pattern that reflects a decline in mineral resource earnings and an increase in tax revenue. The impact on public health expenditure also changes from an increasing to a decreasing pattern, whereas the positive impact on military expenditure and external borrowing persists over time. The findings suggest that African countries in conflict can address their fiscal challenges by observing these patterns and putting in place policies that protect public resources (e.g., the adoption of digital financial technology protocols to facilitate remote revenue collection and strategic protection of mineral resource‐endowed zones from insurgents' control). Overall, enhancing government effectiveness and strengthening the institutions of governance is important to facilitate a quick return to normalcy in the event of conflict and to prevent future conflicts. [ABSTRACT FROM AUTHOR]

The paper is concerned with the relationship between military expenditure and unemployment. The purpose of the paper is to discover the relationship between military expenditure and the unemployment rate using NATO economies as examples and to analyse possible stabilizing effects of military expenditure by means of the ARDL model. The empirical results reveal a negative correlation between military expenditure and the unemployment rate indicating possible important influence of the armed forces as an employer on the labour market in Albania, Bulgaria, Poland and Romania. However, the model results do not confirm that military expenditure could have a stabilizing effect on the state economic policy across NATO member states. [ABSTRACT FROM AUTHOR]

Countries with different democratic levels tend to show various degrees of emphasis on military expenditure and a consensus can hardly be reached on the economic effect of democracy and military expenditure. By applying a panel vector autoregressive (PVAR) approach, this article examines the potential dynamic and endogenous relationships among democracy, military expenditure and economic growth of 126 countries from 1990 to 2020. Furthermore, the k-means clustering algorithm is employed to account for the heterogeneous interaction between democracy and military expenditure in different countries. The empirical results reveal that the strong positive impact of democracy and the negative effect of military spending on economic growth exists in the full sample and the cluster of countries with low democratic levels and a high military burden. For democratic countries with low military expenditure, there is a more significant and negative impact both of military expenditure on democracy and vice versa. [ABSTRACT FROM AUTHOR]

This article presents a theoretical model of conflict between two parties in a two-sector economy. In a 'contested' sector, they struggle to appropriate the maximum possible fraction of a contestable output. In an 'uncontested' sector, they hold secure property rights over the production of some goods. Parties split their resource endowment between 'butter' and 'guns' (in the contested sector) and 'ice cream' (in the uncontested sector). The model predicts that the optimal level of 'guns' depends positively on the price of 'butter' and negatively on the price of 'ice cream'. Theoretical results are tested by means of a panel analysis of sub-Saharan African countries for the period 1980–2017. The results show that international prices of manufactures (interpreted as the uncontested ice cream sector) are negatively associated with arms imports and military expenditure, so confirming the theoretical prediction. In addition, world prices of some commodities are positively associated with arms imports and military expenditure. [ABSTRACT FROM AUTHOR]

Across African countries, terrorism has become a major challenge to socioeconomic development. While there are studies that have examined the influence of terrorism on economic growth, this study adds to the existing literature by investigating the role of military expenditure on the relationship between terrorism and economic growth in Africa. The study utilised a dataset comprising 24 African countries for which terrorism activities have increased substantially in the last decades. Utilising an instrumental variable Fixed Effects model with standard errors that account for cross-sectional dependence, serial correlation and group-wise heteroskedasticity, the study revealed that, (1) terrorism has a detrimental effect on economic growth in the selected African countries, (2) the interactive effect of military expenditure and terrorism on economic growth is significantly positive, (3) the net effect of military expenditure on the relationship between terrorism and economic growth is positive when the number of terrorism incidents act as a proxy for terrorism but negative when the number of terrorism fatalities acts as a proxy for terrorism. However, this negative effect is substantially lower when compared to the unconditional effect of terrorism on economic growth in Africa. Policy recommendations based on these findings are discussed. [ABSTRACT FROM AUTHOR]

The Russian invasion of Ukraine radically altered the strategic context in which the European armed forces operate. For Italy, the event signalled a critical moment as it pushed for at least a partial re-orientation of defence priorities established over three decades, entailing a possible shift from the Southern to the Eastern front and from crisis management to conventional operations as the main focus of the armed forces. This article reconstructs how Italy is adapting to these new constraints by providing a detailed analysis of the responses undertaken and, at the same time, placing those responses in the broader context of Italian defence transformation in recent decades. The objective is to trace continuities and discontinuities in Italian defence policy under the Draghi government and also to assess potential directions for change under the new cabinet led by Giorgia Meloni. [ABSTRACT FROM AUTHOR]

This study investigates the effects of military expenditure, final consumption expenditure, gross national expenditure, net income, broad money, and total reserves on Pakistan's economic growth. The nonlinear autoregressive distributed lag (NARDL) and robust regressions methods are used to examine the relationship among variables. The outcomes revealed that total reserves positively impacted the economic growth during positive and negative short- and long-run shocks. Final consumption expenditure and gross national expenditure negatively influenced the economic growth. Similarly, military expenditure and net income positively and negatively impacted the economic growth, while broad money has adverse and positive relation to economic growth. The results of the robust least squares and stepwise least squares approaches showed that all variables except military expenditure and reserves have positive impact on economic development. This study suggests that government should carefully monitor defence-related investment to maintain economic development. [ABSTRACT FROM AUTHOR]

Although possible asymmetries for univariate and multivariate dynamics have been the focus of interest in many areas of economic explorations, it seems that most of the research on military expenditure - economic growth nexus has tended to assume linear relationships. This paper aims to examine possible nonlinearities in military expenditure-economic growth nexus employing data for a sample of 103 countries covering the 1988-2019 period. For this purpose, Panel Smooth Transition Regression, PSTR, models are estimated not only for all countries' sample but also for low income, middle income, and high-income countries' subsamples to reveal possible distinct asymmetric relationships for country groups with different income levels. Empirical results for the whole sample, low income and middle income groups indicate that military expenditure not only governs the regime change, but also low and high levels of military expenditure have distinctive and rising negative effects on economic growth with dissimilar threshold effects. Moreover, empirical findings also indicate that net arms exports govern regime change for high income countries, and as net arms exports rise, the negative impacts of military expenditure on economic growth become deeper. [ABSTRACT FROM AUTHOR]

The paper explores the impact of military expenditure on external debt in Armenia using time series for 1994-2020. The purpose of this study was to verify the initial hypothesis that the main factor in the rise of Armenia's external debt is the increase in military spending directed at paying for the import of military products. The study was conducted using Johansen's cointegration and Granger's causality tests. The results of Johansen's cointegration test showed that there are long-term interdependencies between military expenditure and external debt, as well as between trade balance and external debt; meanwhile the long-term interdependence between non-military expenditures and external debt was not found. The results of Granger's causality test showed that the military expenditure caused an increase in external debt with a two-year time lag, and a similar causal relationship was also found between the current account balance and external debt. But more remarkable is the fact that the current account balance also caused a change in military expenditure, while the reverse causality has not been established. [ABSTRACT FROM AUTHOR]

Purpose: The empirical analysis dealt in this paper emphasizes on the impact of military expenditures on out of pocket (OOP) healthcare payments. A sizeable body of defence economics literature has investigated the trade-off between military and public health expenditure, by testing the crowding-out or growth-stimulating hypothesis; does military expenditure scaling up crowd-out or promote governmental resources for social and welfare programs, including also state health financing? Design/methodology/approach: In this study, panel data from 2000 to 2018 for 129 countries is used to examine the impact of military expenditure on OOP healthcare payments. The dataset of countries is categorized into four income-groups based on World Bank's income-group classification. Dynamic panel data methodology is applied to meet study objectives. Findings: The findings of this study indicate that military expenditure positively affects OOP payments in all the selected groups of countries, strongly supporting in this way the crowding-out hypothesis whereby increased military expenditure reduces the public financing on health. Study econometric results are robust since different and alternative changes in specifications and samples are applied in our analysis. Practical implications: Under the economic downturn backdrop for several economies in the previous decade and on the foreground of a potential limited governmental fiscal space related to the Covid-19 pandemic adverse economic effects, this study provides evidence that policy-makers have to adjust their government policy initiatives and prioritize Universal Health Coverage objectives. Consequently, the findings of this study reflect the necessity of governments as far as possible to moderate military expenditures and increase public financing on health in order to strengthen health care systems efficiency against households OOP spending for necessary healthcare utilization. Originality/value: Despite the fact that a sizeable body of defence economics literature has extensively examined the impact of military spending on total and public health expenditures, nevertheless to the best of our knowledge there is no empirical evidence of any direct effect of national defence spending on the main private financing component of health systems globally; the OOP healthcare payments. [ABSTRACT FROM AUTHOR]

This study used secondary data from World Development Indicators to examine the implication of the Russia-Ukraine war on Trade relations and Foreign Direct Investment flows into other parts of the world. Data from 85 countries between 2012 and 2021 were analyzed using the generalized method of moments (GMM) technique. Findings revealed that the coefficients of export goods, international trade represented by external trade, food exports and fuel exports had positive and significant results from both panels and all the sub-regions, except for Europe, which revealed a mixed result. Conversely, results from food imports, military expenditure, fuel imports and fossil energy consumption revealed negative but significant results, except food imports in Europe showed an insignificant result. Conclusively, the findings of this study revealed that the current war has increased military expenditure, which has caused a significant setback to FDI and trade relations. This has undermined both bilateral and multilateral trade relations and cut off supply chains, markets, and value chains that have long existed before the crisis amongst countries across the globe. Therefore, world leaders should do everything possible to restore peace between these two countries because it will do the world better than their selfish desires. In addition, if the war degenerates more than this, it would not only be injurious to the global market, trade routes, economy and FDI but can lead the world to another world war. Conclusively, this study will help world countries, governments, leaders, policymakers, investors, and companies in various decision-making endeavors, including war-related decisions. World leaders with management crisis skills who can unite nations should help mediate the conflict between Russia and Ukraine to restore peace. However, further studies are still required on this ongoing war for scholarly guidance as there are still limited empirical studies in the world literature regarding this crisis. [ABSTRACT FROM AUTHOR]

The purpose of this study is to examine the moderating role and threshold level of institutional quality in the nexus between military expenditure and economic growth for a panel of 31 African nations. The results reveal that military expenditure negatively influences growth, while institutional quality positively affects growth. The interactive term of institutional quality and military expenditure significantly positively influence economic growth. However, the threshold level of institutional quality for military expenditure to translate into economic growth in the region is found to be 4.61 on an ordinary scale of 0–10, although most countries operate below the threshold point of institutional quality. The study concludes that strong institutional quality serves as important absorptive capacity for military expenditure to drive economic growth in the region. [ABSTRACT FROM AUTHOR]

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Copyright of Revista Kavilando is the property of Kavilando and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This research endeavors to demonstrate how military spending contributes to increased peace, protection, security, and the safety of a nation's population. War, however, reveals dishonesty in peacetime with terrible clarity. The Russian invasion of Ukraine in 2022, accompanied by a rise in defense budgets, could offer impetus for reorganizing collaborative defense programs. The risks to Europe must be identified and articulated in order to justify increased defense spending. In retrospect, the conventional danger posed by Russia appears less formidable than previously believed, but the job of restoring depleted capabilities is tremendous. Thus, the European defense policy affords chances to spend more and more effectively - these must be properly reevaluated. The policy has garnered tremendous public interest but has yielded minimal results. It has been robust in terms of rhetoric, but weak in terms of actual military and resource commitments. This essay provides a critical economic analysis of European defense policy. It identifies the policy issue, the economics of the issue, future opportunities, and obstacles to obtaining more and improved spending. The objective is to demonstrate how economic analysis may be applied to the intricacies of European defense policy. Economic efficiency criteria indicate the role of end outputs, substitution, and competition to the design of European defense policy, although military-political considerations are more likely to affect the ultimate outcomes than economic efficiency criteria. [ABSTRACT FROM AUTHOR]

The need to attain lower carbon dioxide emissions has become a topical issue in recent times. The effect of a number of economic variables on carbon dioxide emissions has been empirically assessed. Rising government expenditure, industrialization, and militarization have characterized many developing countries including Ghana. While it is undeniable that such situation has socio-economic importance to offer developing countries, their environmental effects have become a matter of debate among researchers. This study assesses the carbon dioxide emissions effect of industrialization, government expenditure, and militarization in Ghana. Based on the Stochastic Impacts by Regression on Population, Affluence, and Technology (STIRPAT) framework, the study models Ghana's carbon emission as a function of income, population, industrialization, government expenditure, and military expenditure. Time series data over the 1971–2018 period was used for investigation. The techniques employed to analyze the data were unit root test, cointegration test, and regression analysis. The autoregressive distributed lag (ARDL) regression approach reveals there is an inverted U-shaped relationship between income and carbon emission confirming the environmental Kuznets curve hypothesis. Also in the long run, carbon emissions are positively influenced by population, industrialization, and militarization but reduced by government expenditure. Similar outcome was obtained in the short run. The paper concludes that the level of income, industrialization, militarization, and population matters to deal with carbon dioxide emissions in Ghana. Policy implications of the findings include the urgent need for authorities to promote the use of eco-friendly production methods for military and industrial activities to sustain the economic growth without harming the environment. [ABSTRACT FROM AUTHOR]

Previous studies have investigated the relationship between political instability and economic growth separately from the relationship between military expenditure and economic growth. Besides, they did not cover the period after 2011 (i.e. the Arab Spring and its consequences). Therefore, this paper attempts to empirically analyze the long-run and short-run impacts of both political instability and military expenditure on economic growth in Egypt. We estimate the autoregressive distributed lag (ARDL) approach using data on the Egyptian economy over the period 1982–2018. For the robustness of our results, we use the fully modified ordinary least squares (FMOLS) estimator. Results of the ARDL approach indicate a significant negative relationship between political instability and economic growth in both the long-run and short-run. Contrarily, military expenditure has an insignificant impact on economic growth, especially in the long-run. These results are confirmed by the FMOLS estimator. Moreover, the estimated coefficient on the one-period lagged error correction term (ECTt-1) indicates that deviations from the long-run equilibrium relationship are corrected within a year. [ABSTRACT FROM AUTHOR]

In this study we analyze the long-run relationship between openness and military expenditure in Turkey by employing an annual data set running from 1960 to 2018 and ARDL estimation technique. We conducted our analyses by using two different measures of military expenditure to check the validity and robustness of the findings. Co-integration test results show that openness and military expenditure are co-integrated; thus, they move together in the long-run in Turkey. Long-run coefficient estimation results disclose that openness has statistically significant positive effect on military expenditure. In other words, one percent increase in openness cause to a jump in military expenditure by 1.55% and 1.18% for ARDL (1,1) and ARDL (2,1) models respectively in Turkey. On the other hand, openness has a negative influence on military expenditure in the short-run. Meanwhile diagnostic test results indicate that our models do not contain autocorrelation, heteroskedasticity, model misspecification, and parameter instability problems. [ABSTRACT FROM AUTHOR]

This study attempts to reveal the short-run and long-run relationship between population and military expenditure in Turkey by employing an annual dataset covering the periods of 1960-2018 and ARDL estimation technique. Robustness of the results was checked by employing two different indicators of military expenditure. According to co-integration test results, population and military expenditure move together in the long-run. Long-run coefficient estimation findings identified a positive statistically significant association between population and military expenditure. More specifically, if population in Turkey jumps by 1% then military expenditure increases by either 3.99% or 1.91%. Also diagnostic test results show that estimated models do not contain autocorrelation, heteroskedasticity, model specification error, and parameter instability problems. [ABSTRACT FROM AUTHOR]

Feminist scholars have long argued that militarism and patriarchy are linked. To date, however, the relationship between militarization and gender inequality has not been empirically tested. Using the Gender Inequality Index and the Global Militarization Index for the period of 1990–2017 for 133 countries, we put the spotlight on militarization to show how it reflects and contributes to gender inequality (in terms of health, education, political representation, and labor force participation). Our article shows that higher militarization is significantly correlated with higher gender inequality, controlling for major variables such as the military in politics, the proportion of parliamentary seats held by women, conflict, democracy level, and regime type. Among other results, we find that higher representation of women in parliament correlates with less military spending. The results are significant in the case of Muslim majority countries and MENA countries, and with respect to countries with different income levels. [ABSTRACT FROM AUTHOR]

This paper examines the demand for military expenditure in eighteen selected Indo-Pacific countries for the years 1993–2018. As the dominant powers, the U.S. and China characterize the geopolitical structure of the Indo-Pacific region. Sino-U.S. relations are newly quantified by measuring the number of cooperative and conflict events between China and the United States based on the Global Database of Events, Language, and Tone (GDELT). After incorporating Sino-U.S. relation variables into neoclassical demand models, the panel data estimating results reveal that the increasing number of confrontations from the United States toward China has lead to increases in non-U.S. allies' military expenditure while the rise in China confronting the United States has not. U.S. allies in the Indo-Pacific region have tended to increase military expenditure when the United States increases its pressure on China. The empirical results provide evidence that Sino-U.S. relations affect the level of military expenditure in the Indo-Pacific Region. [ABSTRACT FROM AUTHOR]

This paper provides an overview of the Canadian defence sector following the Cold War. A review of Canadian defence policy in this period indicates that, though the mission of the Canadian military did not change, fiscal realities forced severe restrictions on the size and capabilities of the organization. Comparisons between Canada and other G7 NATO nations indicate that throughout this period, Canada has consistently devoted fewer resources to the military than its allies. A review of Canada's defence industrial base and defence policy indicates that this limited funding has led to a small and uncompetitive defence sector in the Canadian economy. Lastly, a regression analysis of Canada's defence spending is undertaken which reveals that domestic economic variables are the primary determinant of Canadian defence spending during this period. [ABSTRACT FROM AUTHOR]

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The aim of this study is to investigate the influence of military expenditure on the relationship between terrorism and investment in twenty-four African countries for the period 2001 to 2018. The study utilizes fixed effects regression with Driscoll and Kraay standard error and cushions the effect of simultaneity and reverse causality using the lags of the regressors as instruments. The empirical results reveal the negative effect of terrorism on both domestic investment and foreign direct investment (FDI). The study further reveals a negative net effect of military expenditure on the relationship between terrorism and investment. Furthermore, it was discovered that a threshold of 2% to 5% of military expenditure in GDP is required for military expenditure to offset the negative effect of terrorism on FDI. The study recommends that counterterrorism initiatives be tailored more towards inclusive growth policies, increasing access to education, and improving the quality of governance. [ABSTRACT FROM AUTHOR]

There is a consensus that the post-war Japanese foreign policy is based on the Yoshida Doctrine or Yoshida Line, which refers to the strategies of former Prime Minister Shigeru Yoshida, who relied upon US military security, and maintained limited defense forces while focusing on economic recovery and growth. This paper reconsidered the Yoshida Doctrine, referencing multiple related arguments and evidence, reaching a conclusion that post-war Japanese foreign policy should not be called the Yoshida Doctrine or Yoshida Line. The Yoshida Doctrine is an analytical concept created by researchers in the 1980s to justify Japanese foreign policy. This was done in response to the domestic and foreign criticism of low-level military spending, despite the flourishing economy. The Yoshida Doctrine differs from other foreign policy doctrines and has no merit for being called a doctrine. Furthermore, the ideas supporting this doctrine are not based on definitive proof; rather, they merely represent Yoshida's image, and a spurious correlation, drawn between limited defense spending and high-economic growth. The analysis carried out in this study reveals that the Yoshida Doctrine is fundamentally flawed. As a result, this study insists that it is necessary to abandon the Yoshida Doctrine as a base for future research on Japanese diplomacy. [ABSTRACT FROM AUTHOR]

This study investigates the nexus between military expenditure and exploding external debt in 13 countries of the Middle East and North Africa (MENA) from 2000 to 2019 by employing the second generation of panel econometrics such as cross-sectional independence (CD), CIPS unit root, Pedroni cointegration, Westerlund cointegration, and panel PMG model. The sensitivity of long-run estimates is explored by using fully modified ordinary least square (FMOLS) and dynamic ordinary least square (DOLS) regression analysis. Pedroni and Westerlund's cointegration findings reveal that the selected variables are cointegrated in the long run. The long-run results of the PMG model revealed that current account balance, fiscal balance, and foreign exchange reserve reveal the significant negative effect of various intensities, whereas increasing military spending shows a significant positive effect of higher intensity. The short-run results of the PMG model reveal an insignificant effect of selected variables. Estimated results of FMOLS and DOLS show the robustness of established long-run relationships. This study urges governments of selected MENA countries to address current account and fiscal imbalances along with the considerable reduction of military expenditures to free capital required for productive economic activities. [ABSTRACT FROM AUTHOR]

This study investigates the nexus between military expenditure and exploding external debt in 13 countries of the Middle East and North Africa (MENA) from 2000 to 2019 by employing the second generation of panel econometrics such as cross-sectional independence (CD), CIPS unit root, Pedroni cointegration, Westerlund cointegration, and panel PMG model. The sensitivity of long-run estimates is explored by using fully modified ordinary least square (FMOLS) and dynamic ordinary least square (DOLS) regression analysis. Pedroni and Westerlund's cointegration findings reveal that the selected variables are cointegrated in the long run. The long-run results of the PMG model revealed that current account balance, fiscal balance, and foreign exchange reserve reveal the significant negative effect of various intensities, whereas increasing military spending shows a significant positive effect of higher intensity. The short-run results of the PMG model reveal an insignificant effect of selected variables. Estimated results of FMOLS and DOLS show the robustness of established long-run relationships. This study urges governments of selected MENA countries to address current account and fiscal imbalances along with the considerable reduction of military expenditures to free capital required for productive economic activities. [ABSTRACT FROM AUTHOR]

Over a period of more than a century and a half (1852–2019), military expenditure in Portugal reached its highest values in the contexts of the Great War (1914–1918) and the Colonial War (1961–1974). In almost every year between these two conflicts, military expenditure was the most important sector within the structure of the Portuguese State. However, with the end of the Colonial War and Portugal's entry into Democracy, there was a clear shift in this pattern. Since 1975, military expenditure has ceased to be the most important sector of the Portuguese State, and currently plays only a very reduced role, while social spending has today supplanted it as the most significant sector. Through the estimation of a dynamic model, it proved possible to identify some of the positive and negative effects of military spending on the Portuguese economy during the period 1874–2018. These results are a possibility that is supported by the theoretical framework. [ABSTRACT FROM AUTHOR]

With modernization, ideological shifts and economic interdependency, the concept of globalization has expanded vastly. Though the world is unipolar, still the international competition remains prevalent that poses serious threats to regional conflicts. The great powers of the world are still competing with each other for influence over other countries. Thus, the role of militarization cannot be ignored in this context. Thus, it would be interesting to examine the impact of military expenditures on the globalization process through the spill-over effects, along with their relationship with economic growth. The study employed panel data consisting of African countries, covering the time period from 2001 to 2014. The econometric estimation is done through the application of spatial econometric techniques, that is, the spatial autoregressive fixed effect model and spatial Durbin fixed effect model. The study has found a positive relationship between economic growth and globalization but a negative relationship was found between military expenditures and economic growth. [ABSTRACT FROM AUTHOR]

This paper aims to contribute to the theoretical discussions on the effect of military spending on the economy. To this end, it first modifies the circuit of capital model proposed by Duncan Foley in 1982, which represents money value stock-flow relations for capital in Capital Volume II. Foley's model is extremely useful for examining the relationship between military spending and the rates of profit as it allows one to specify the parameters in both the military and civilian sectors. By incorporating the military sector, the adapted model shows that a larger military sector is associated with a higher rate of profit. Second, the paper provides some empirical evidence on the US for 1968–2008 for the main proposition of the theoretical model. [ABSTRACT FROM AUTHOR]

Do alliances allow states to share defense burdens and reduce military spending? Despite expectations that alliances should lead to decreased military spending, the empirical record offers mixed findings. We argue that not all alliances are reliable; thus, only allies that receive signals of reassurance will rely on the external security of allies and subsequently reduce their military spending. Compared to states that do not receive additional signals, these reassured allies will have greater confidence that an ally will come to their aid. As a result, third-party aggressors are deterred and the demand for military spending will decrease. We test this argument with an analysis of US signals of support, alliance commitments, and military spending. We find that American alliances without additional signals of support have a negligible effect on military spending. Yet, we observe that alliances are negatively associated with military spending when signals of support are present. Additional tests indicate that alliance commitments, coupled with strong US signals, are also associated with lower military spending in the rivals of US allies. Our results potentially help explain the mixed evidence in the arms-versus-allies and burden-sharing literatures and further demonstrate that extra-alliance signals play an important role in the practice of International Relations. [ABSTRACT FROM AUTHOR]

The dissolution of the Eastern Bloc at the end of the Cold War compelled most of the centrally-planned economies to adjust their economic order to become free market economies. During the transition process, most of those countries experienced severe external debt overhang problems, due to excessive budget deficits and rapid liberalization of foreign trade and capital account regimes. In addition, most of those countries were facing political unrest due to internal and external conflicts by the end of the Cold War, with rampant weapons proliferation and the arms race. By employing the fixed effect panel threshold regression approach, we unveil the non-linear relationship between military spending and external indebtedness, which has not been examined for the selected twelve transition economies over the period from 1997 to 2016. Our findings reveal the presence of double threshold effects that are embedded in military expenditure, and the debt-accelerating effect of military spending emerges after the first regime. In the early stages, countries tend to finance military expenditure with the help of domestic savings, whereas the requirement for external borrowing emerges later as domestic savings become inadequate. We have also produced some crucial policy recommendations to reflect our findings. [ABSTRACT FROM AUTHOR]

It is generally believed that high levels of military expenditures hamper economic growth because it crowds out investment. In this study, we investigate how defense spending affects economic growth in the 50 developing countries over the period 2010 to 2016. The results reveal that there is a positive and significant relationship between defense spending and economic growth in the developing countries. It means that, when economic growth, it encourages military sector to spend more, and also population is directly related to economic growth, meaning that when population increase, it rises military expenditure in the developing countries. [ABSTRACT FROM AUTHOR]