Cross border effects of military spending: A free ride or an arms race?
Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
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
arms race, free riding, military expenditure
IdentifiersURN: urn:nbn:se:uu:diva-226546OAI: oai:DiVA.org:uu-226546DiVA: diva2:726388
Liang, Che-Yuan, Forskare
Ohlsson, Henry, Professor