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Cross border effects of military spending: A free ride or an arms race?
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
2014 (English)Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

By studying patterns of military expenditure for an assortment of 116 states from 1989-2012 I explore whether military expenditure of states affect, and are affected by, the military spending of neighbouring states. Is there an arms-race effect between neighbours, or do states free-ride on the spending of their neighbours?

To answer this question I turn to a panel data set, compiled from an array of sources, analyzed with a fixed effects regression model. By expanding the 1960’s Richardsonian arms-race model with other factors such as economic and political development and time-trends I investigate the importance of arms-race and other spillover effects for military expenditures.

I find some support for the idea that arms-race effects play a role in determination of military burdens, I also find evidence of free-riding for some countries.

Place, publisher, year, edition, pages
Keyword [en]
arms race, free riding, military expenditure
National Category
URN: urn:nbn:se:uu:diva-226546OAI: oai:DiVA.org:uu-226546DiVA: diva2:726388
Available from: 2014-06-18 Created: 2014-06-18 Last updated: 2014-06-18Bibliographically approved

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