Economic, Security, and Political Determinants of Military Spending in NATO Countries

Odehnal, Jakub; Neubauer, Jiřı́

doi:10.1080/10242694.2018.1544440

Cited by 46 publications

(27 citation statements)

References 12 publications

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“…It is an empirical study carried out from the Keynesian perspective of defence economics and its relationship with economic growth, and not from the neoclassical literature on economic growth towards defence economics. To some extent, this investigation is in line with the articles about NATO [ 3 – 6 ] in which, the results, after using multiples variables, confirm, above all, the relation between the military expenditure and the economic growth.…”

Section: Methodssupporting

confidence: 88%

“…This paper is not exactly an extension of some existing work such us Odehnal [ 3 , 4 ], Ozun [ 5 ] or Spangler [ 6 ], among others. None of them analyse the relationship between the military expenditure and the economic growth with a dynamic panel data model.…”

Section: Introductionmentioning

confidence: 94%

“…However, there are few studies carried out on other European countries in relation with the NATO. It is interesting to highlight, among others, Odehnal et al [ 3 , 4 ] Ozun [ 5 ], or Spangler [ 6 ].…”

Section: Conceptual Frameworkmentioning

confidence: 99%

“…In these countries, defence spending depends as much on economic factors [ 3 ] as on political and sociological factors. Implementing a defence policy that guarantees the necessary funding of the armed forces proves difficult if social awareness about the relevance of the armed forces has not been raised, for example to guarantee the defence of the national territory and to ensure the fulfilment of international commitments, such as those entailed by the NATO membership.…”

Section: Introductionmentioning

confidence: 99%

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A tale of five stories: Defence spending and economic growth in NATO´s countries

2021

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This article examines the relationship between defence expenditure and its impact on the growth of NATO’s countries between 2005 and 2018. The aim is to determine if this relation exists and to test if it is possible to discover different models across the countries. The results obtained using the Arellano–Bond estimator, suggest that there is more than one model, and confirm, through the poolability test, the existence of five different groups of countries within the Alliance, with different impacts of the defence expenditure on their gross domestic product. These findings are in line with the review of existing literature that reveals heterogeneity in the results due to different parameters used.

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Section: Methodssupporting

confidence: 88%

Section: Introductionmentioning

confidence: 94%

Section: Conceptual Frameworkmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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A tale of five stories: Defence spending and economic growth in NATO´s countries

2021

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“…Their conclusions confirm that among the studied economic variables, youth unemployment has the highest level of statistical significance regarding the most significant impact on the number of terrorist attacks in the analyzed countries. As far as military expenditures as a determinant of terrorist activities are concerned, the authors expected a negative connection between the respective amount and the number of terrorist acts (more to this hypothesis can be found in Odehnal and Neubauer, 2018, who analyze terrorism as one of the determinants of military expenditures). Nevertheless, results given by their model confirmed an opposite conclusion; i.e., the amount of military expenditures has positive influence on the number of terrorist attacks.…”

Section: Introductionmentioning

confidence: 99%

Economic and Political Determinants of Terrorism in Selected European Countries

Tejkal¹,

Odehnal²,

Michálek³

2020

Acta Univ. Agric. Silvic. Mendelianae Brun.

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In this paper, we aim to assess the connection between terrorist attacks and socioeconomic and political indicators through an empirical study of selected 16 European countries. In order to reduce the dimension of the problem, factor analysis is applied in order to transform the indicator variables into factors. The countries are classified into clusters based on similarity of their economic and political indicator development, using loadings of the indicators onto the factors. For countries in each cluster, the connection of their political and socioeconomic indicators with terrorist attacks is then studied via correlation analysis of the attacks and the aforementioned factors. We propose two hypotheses – the hypothesis of opportunity costs, and the hypothesis of economic deprivation. For countries in each cluster, the hypotheses are examined with the use of correlation analysis. The results indicate that economic development affects the frequency of terrorist attacks in Belgium, France, Italy, the Netherlands, Luxembourg, Portugal, Spain, the United Kingdom, Ireland, and Switzerland.

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