2003
DOI: 10.1080/1024269032000085224
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The demand for military spending in developing countries: A dynamic panel analysis∗

Abstract: Estimating demand functions for developing countries before and after the end of the Cold War, Dunne and PerloFreeman (2003) found little evidence of any change in the underlying relationship. One concern with their analysis was that the use of cross-section averages might have obscured important time series effects. This paper deals with this issue by analysing their data using static and dynamic panel data methods. This produces evidence of a change in relationship and suggests that the focus in the literat… Show more

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Cited by 94 publications
(52 citation statements)
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“…Not only are autocracies more likely to experience violent uprising, they are also more incline than democracies to meet it with large-scale force, which in turn should lead to higher expenditures on the military. These ideas are supported by empirical evidence -see for example Hewitt, 1992;Dunne and Perlo-Freeman, 2003;Goldsmith, 2003;Fordham and Walker, 2005;Acemoglu et al, 2010, who find that dictatorships spend more on the military than democracies do.…”
Section: Studying Military Expenditures Is Important For Many Reasonssupporting
confidence: 55%
See 1 more Smart Citation
“…Not only are autocracies more likely to experience violent uprising, they are also more incline than democracies to meet it with large-scale force, which in turn should lead to higher expenditures on the military. These ideas are supported by empirical evidence -see for example Hewitt, 1992;Dunne and Perlo-Freeman, 2003;Goldsmith, 2003;Fordham and Walker, 2005;Acemoglu et al, 2010, who find that dictatorships spend more on the military than democracies do.…”
Section: Studying Military Expenditures Is Important For Many Reasonssupporting
confidence: 55%
“…Following the literature on the determinants of military expenditures (see for example Dunne and Perlo-Freeman, 2003), we regress the log of military burden on the regime type dummies, Polity IV, internal war, external war, log GDP per capita, log population and log openness. GDP per capita is a measure of wealth, while population is a measure of size.…”
Section: Methodology and Empirical Resultsmentioning
confidence: 99%
“…2 The international security environment, such as regional and global conflicts, an ongoing arms race and superpower alliances have been shown to matter the most (Maizels and Nissanke 1986;Looney and Frederiksen 1990;Smith 1995;Dunne and Perlo-Freeman 2003;Goldsmith 2003;Dunne et al 2008;Nordhaus et al 2012). …”
Section: Political Determinants Of Military Spendingmentioning
confidence: 99%
“…Two types of model have been used to examine the determinants of military spending 2003a): firstly, the arms race model (Richardson, 1960), which focuses primarily on the military spending of potential enemies or allies to explain defense spending;…”
Section: Related Empirical Literaturementioning
confidence: 99%
“…The empirical literature examining these issues (Rosh, 1988;Dunne & Perlo-Freeman, 2003a, 2003b, Dunne et al, 2008Gadea et al, 2004;Yildirim, J. & S. Sezgin, 2005;Collier & Hoeffler, 2007;Nikolaidou, 2008) has shed some light on our overall understanding of military spending.…”
Section: Introductionmentioning
confidence: 99%