Abstract
In this paper we analyse the effect of multilateral defence alliances in arms trade among allies. We postulate that the access to the frontier technology weaponry enabled only to military allies will intensify arms trade. The benefits of such trade are claimed to be in security and technology diffusion. We execute an empirical analysis for the North Atlantic Treaty Organization (NATO). Results show that being a member or partner of NATO significantly increases arm imports coming from the alliance, and that this increase cannot be attributed to economic and additional country characteristics.
Funding source: European Social Fund
Award Identifier / Grant number: ECO2016-76255-P
Funding statement: Financial support from the Ministry of Education and Science through grants RTI2018-095799-B-I00 (MINECO/FEDER), ECO2017-86305-C4-2-R, ECO2016-76255-P, the Regional Government of Aragón and the European Social Fund (S125 project: Compete), and the Centro Universitario de la Defensa Zaragoza through the 2018-12 project is gratefully acknowledged.
Appendix
List of countries.
Afghanistan, Albania, Algeria, Armenia, Australia, Austria, Azerbaijan, Bahrain, Belarus, Belgium, Bosnia-Herzegovina, Bulgaria, Canada, Colombia, Croatia, Czech Rep., Denmark, Egypt, Estonia, Finland, France, Georgia, Germany, Greece, Hungary, Iceland, Iraq, Ireland, Israel, Italy, Japan, Jordan, Kazakhstan, Korea, Kuwait, Kyrgyzstan, Latvia, Lithuania, Luxemburg, Macedonia, Malta, Mauritania, Moldova, Mongolia, Montenegro, Morocco, Netherlands, New Zealand, Norway, Pakistan, Poland, Portugal, Qatar, Romania, Russia, Serbia, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Tajikistan, Tunisia, Turkey, Turkmenistan, UAE, UK, USA, Ukraine, Uzbekistan |
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Article note
We are grateful to participants at the nineteenth edition of the Conference on International Economics, the 19th Jan Tinbergen European Peace Science Conference and the editors for helpful suggestions and comments.
© 2019 Walter de Gruyter GmbH, Berlin/Boston
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