Middle Powers and the Demand for Military Expenditures
Defence and Peace Economics Volume 25, 2014 - Issue 6
Posted: 16 Sep 2016
Date Written: 2014
This paper identifies and classifies middle power nations through the use of broad political science definitions, the demand for military expenditures models and gross domestic product (GDP) per capita. The latter is used as a simple quantifiable measure of relative and potential military power. The paper also develops and utilizes a threat variable that is applicable to middle power nations. The panel data analysis shows that the middle power nations react to threat variables that proxy global instability utilize foreign aid as a complementary policy tool along with military expenditures, and face significant trade-offs between military and non-military government spending.
Keywords: Threat, NATO, Demand for Military Expenditure, Middle Powers Countries, Panel Data
JEL Classification: H56, C33
Suggested Citation: Suggested Citation