Economic, Security, and Political Determinants of Military Spending in NATO Countries
In: Defence & peace economics, Band 31, Heft 5, S. 517-531
ISSN: 1476-8267
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In: Defence & peace economics, Band 31, Heft 5, S. 517-531
ISSN: 1476-8267
In: Vojenské rozhledy: vojenskoteoretický časopis = Czech military review, Band 22, Heft 3, S. 114-122
ISSN: 2336-2995
Data analyses using methods of exploratory and inductive statistics nowadays form an integral part of many areas of human activities. The paper is focused on the statistical processing of data using a new application STAT1 that works under Microsoft Office Excel. The explanation is given, the source is stated, and the comparison with alternative application software tools is mentioned. Moreover, the examples of practical utilization of STAT1 in the military area are presented.
In: Vojenské rozhledy: vojenskoteoretický časopis = Czech military review, Band 31, Heft 3, S. 63-83
ISSN: 2336-2995
The article aims to identify the dependence of military expenditures and selected economic determinants on the example of the V4 countries in the years 1999-2020. The following are selected as economic determinants: the size of the gross domestic product, the rate of inflation, the debt and deficit of the government sector and unemployment. Correlation analysis proved the expected relationship between the gross domestic product and the military expenditure of Hungary and especially Poland. The relationship between military spending and unemployment was confirmed for Poland, Hungary and Slovakia, the expected relationship between military spending and government debt for the Czech Republic. The linear regression model confirmed the positive effect of the gross domestic product on military expenditure in the case of Poland, the effect of the increase in military expenditure due to rising inflation in Hungary and the negative effect of increasing state indebtedness in the case of the Czech Republic. At the same time, the results did not confirm the uniformity of the factors affecting the size of the military factors in the analyzed V4 countries.
The article presents the use of the ARDL model to identify military expenditure determinants of the Baltic States (Lithuania, Latvia, and Estonia). Factors influencing military expenditure include the variables characterizing the economic environment of the analyzed countries (GDP per Capita, Government Deficit/Surplus, General Government Gross Debt, Inflation), and the security environment measured by Risk of Foreign Pressures, Risk of Cross-border Conflict, and Democratic Accountability. General conclusions about the analysis of relationships between the military expenditure level and selected economics and security determinants were confirmed in the cases of Government Deficit/Surplus, GDP per Capita and Inflation. The results, therefore, indicate that the military expenditure of Estonia and Lithuania depended on the state budget deficit where military expenditure tended to go down in relation to an increasing deficit within the assessed period. As far as Estonia is concerned, the findings about relationship between the economic position and military expenditure was validated as an increasing economic performance tended to increase military expenditure.
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The aim of the article is to identify possible "follower" behaviour; it means to reveal countries following the average military burden of North Atlantic Treaty Organization (NATO) member states. To analyse the relationship between military expenditure of NATO member states and selected socio-economic variables (average military burden of NATO member states, gross domestic product, government expenditure (non-military), share of trade balance of gross domestic product and population), the Autoregressive Distributed Lag model has been used. The short-term results demonstrate follower behaviour, especially in the new NATO member states (effort to fulfil the commitment to spend 2% of gross domestic product on defence). The long-term results have revealed a positive relationship between military expenditures and the variable describing the average military burden of NATO member states in the traditional and also new NATO member states. A positive relationship between military expenditure and gross domestic product has also been observed in the majority of evaluated countries in the long-term model. The public good effect has been determined in six member states only, and the crowding out effect in five member states. A positive effect of the balance of trade on military expenditure has been observed in two countries only.
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