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Trade and Military Alliances: Evidence from NATO

  • Francisco J. Callado-Muñoz ORCID logo EMAIL logo , Jana Hromcová ORCID logo und Natalia Utrero-González ORCID logo
Veröffentlicht/Copyright: 4. Dezember 2019

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.

JEL Classification: F53; O33; H5; O5

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

Table A:

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.


Published Online: 2019-12-04

© 2019 Walter de Gruyter GmbH, Berlin/Boston

Heruntergeladen am 3.12.2025 von https://www.degruyterbrill.com/document/doi/10.1515/peps-2019-0027/pdf
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