Economidou, Claire, Karamanis, Dimitris, Kechrinioti, Alexandra, Konstantakis, Konstantinos N. and Michaelides, Panayotis G. (2024) Unpacking the dynamics of military spending in a globalized world: economic impacts with a network GVAR model. Journal of Economic Studies, 51 (3). 501 - 527. ISSN 0144-3585
Full text not available from this repository.Abstract
Purpose In this work, the authors analyze the dynamic interdependencies between military expenditures and the real economy for the period 1970–2018, and the authors' approach allows for the existence of dominant economies in the system. Design/methodology/approach In this study, the authors employ a Network General Equilibrium GVAR (global vector autoregressive) model. Findings By accounting for the interconnection among the top twelve military spenders, the authors' findings show that China acts as a leader in the global military scene based on the respective centrality measures. Meanwhile, statistically significant deviations from equilibrium are observed in most of the economies' military expenses, when subjected to an unanticipated unit shock of other countries. Nonetheless, in the medium run, the shocks tend to die out and economies converge to an equilibrium position. Originality/value With the authors' methodology the authors are able to capture not only the effect of nearness on a country's military spending, as the past literature has documented, but also a country's defense and economic dependencies with other countries and how a unit's military expenses could shape the spending of the rest. Using state-to-the-art quantitative and econometric techniques, the authors provide robust and comprehensive analysis.
| Item Type: | Article |
|---|---|
| Additional Information: | © 2023 Emerald Publishing Limited |
| Divisions: | Hellenic Observatory |
| Subjects: | H Social Sciences > HC Economic History and Conditions H Social Sciences > HJ Public Finance |
| JEL classification: | C - Mathematical and Quantitative Methods > C3 - Econometric Methods: Multiple; Simultaneous Equation Models; Multiple Variables; Endogenous Regressors > C30 - General C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C51 - Model Construction and Estimation H - Public Economics > H5 - National Government Expenditures and Related Policies > H56 - National Security and War |
| Date Deposited: | 18 Sep 2024 13:09 |
| Last Modified: | 14 Nov 2024 00:21 |
| URI: | http://eprints.lse.ac.uk/id/eprint/125452 |
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