Abstract
The aim of this study is to survey the literature dealing with the relationship between defense expenditures and external debt. Especially, nowadays, amid the international financial crisis and the global security challenges, understanding the relationship between external debt and defense spending is prominent in designing the debt management policy in conjunction with defense policy. The empirical investigation has produced mixed results, which can be attributed to differences in data sets or time periods, variable selection, econometric methodologies used etc. However, most of the studies confirm the presence of a long-run relationship among military spending and external debt and consider military spending as a significant contributing factor to the stock of external debt.
References
Ahmed, A. D. 2012. “Debt-Burden, Military Spending and Growth in Sub-Saharan Africa: A Dynamic Panel Data Analysis.” Defence and Peace Economics 23 (5): 485–506, https://doi.org/10.1080/10242694.2011.627163.Suche in Google Scholar
Alami, R. 2002. “Military Debt: Perspectives from the Experience of Arab countries.” Defence and Peace Economics 13 (1): 13–30, https://doi.org/10.1080/10242690210964.Suche in Google Scholar
Alexander, R. 2013. “The Defence-Debt nexus: Evidence from the High-Income Members of NATO.” Defence and Peace Economics 24 (2): 133–45, https://doi.org/10.1080/10242694.2012.673839.Suche in Google Scholar
Anfofum, A. A., H. A. Andow, and A. N. Mohammed. 2014. “Military Spending and External Debt Burden in Nigeria.” International Journal of Education and Research 2 (7): 611–26.Suche in Google Scholar
Azam, M., and Y. Feng. 2015. “Does Military Expenditure Increase External Debt? Evidence from Asia.” Defence and Peace Economics 28 (5): 550–67, https://doi.org/10.1080/10242694.2015.1072371.Suche in Google Scholar
Brzoska, M. 1983. “The Military Related External Debt of Third World Countries.” Journal of Peace Research 20 (3): 271–7, https://doi.org/10.1177/002234338302000308.Suche in Google Scholar
Caruso, R., and M. Di Domizio. 2016. “Interdependence Between US and European Military Spending: A Panel Cointegration Analysis (1988–2013).” Applied Economics Letters 23 (4): 302–5, https://doi.org/10.1080/13504851.2015.1071466.Suche in Google Scholar
Caruso, R. and M. Di Domizio. 2017. “Military Spending and Budget Deficits: The Impact of US Military Spending on Public Debt in Europe (1988–2013).” Defence and Peace Economics 28 (5): 534–49, https://doi.org/10.1080/10242694.2016.1228259.Suche in Google Scholar
DiGiuseppe, M. 2015. “Guns, Butter, and Debt: Sovereign Creditworthiness and Military Expenditure.” Journal of Peace Research 52 (5): 680–93, https://doi.org/10.1177/0022343315587970.Suche in Google Scholar
Dimitraki, O., and A. Kartsaklas. 2017. “Sovereign Debt, Deficits and Defence Spending: The Case of Greece.” Defence and Peace Economics 29 (6): 1–16, https://doi.org/10.1080/10242694.2017.1289497.Suche in Google Scholar
Dunne, J. P., and R. P. Smith. 2010. “Military Expenditure and Granger Causality: A Critical Review.” Defence and Peace Economics 21 (5–6): 427–41, https://doi.org/10.1080/10242694.2010.501185.Suche in Google Scholar
Dunne, J. P., S. Perlo-Freeman, and A. Soydan. 2004a. “Military Expenditure and Debt in Small Industrialized Economies: A Panel Analysis.” Defence and Peace Economics 15 (2): 125–32, https://doi.org/10.1080/1024269032000110504.Suche in Google Scholar
Dunne, J. P., S. Perlo-Freeman, and A. Soydan. 2004b. “Military Expenditure and Debt in South America.” Defence and Peace Economics 15 (2): 173–87, https://doi.org/10.1080/1024269032000110540.Suche in Google Scholar
Dunne, J. P., E. Nikolaidou, and A. Chiminya. 2019. “Military Spending, Conflict and External Debt in Sub-Saharan Africa.” Defence and Peace Economics 30 (4): 462–73, https://doi.org/10.1080/10242694.2018.1556996.Suche in Google Scholar
Esener, S. C., and E. Ipek. 2015. “Expanding Effects Of Military Expenditures On External Debt In Developing Countries.” Journal of Business, Economics and Finance 4 (4): 617–32. https://doi.org/10.17261/Pressacademia.2015414532.Suche in Google Scholar
Feridun, M. 2005. “An Econometric Analysis of the Military Expenditure and External Debt in Argentina.” International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova 58 (4): 391–403.Suche in Google Scholar
Feridun, M., and S. T. Akindele. 2005. “An Empirical Examination of the Nexus Between Military Spending and Evolution of Nigeria’s External Debt.” In Nigerian Economy Essays of Economic Development, edited by M. Feridun, and S. T. A. Morrisville, 395–405. North Carolina: Lulu Press.Suche in Google Scholar
Frederiksen, P. C., and R. E. Looney. 1982. “Defense Expenditures and Economic Growth in Developing Countries: Some Further Empirical Evidence.” Journal of Economic Development 7: 113–25.Suche in Google Scholar
Frederiksen, P. C., and R. E. Looney. 1983. “Defense Expenditures and Economic Growth in Developing Countries.” Armed Forces and Societv 9 (4): 633–45, https://doi.org/10.1177/0095327x8300900406.Suche in Google Scholar
Frederiksen, P. C., and R. E. Looney. 1985. “Another Look at Defense Spending and Development Hypothesis.” Defense Analysis 1 (3): 205–10, https://doi.org/10.1080/07430178508405204.Suche in Google Scholar
Georgantopoulos, A., and A. Tsamis. 2011. “The Interrelationship between Military Expenditure and External Debt: Patterns of Causation in Northern Africa Countries.” Journal of Economics and Behavioral Studies 3 (4): 264–73, https://doi.org/10.22610/jebs.v3i4.279.Suche in Google Scholar
Günlük-Senesen, G. 2004. “The Role of Defence on External Indebtedness: An Assessment of Turkey.” Defence and Peace Economics 15 (2): 145–56, https://doi.org/10.1080/1024269032000110522.Suche in Google Scholar
Hewitt, D. 1991. “Military Expenditure: Econometric Testing of Economic and Political Influences.” IMF Working Paper 91 (53): 1, https://doi.org/10.5089/9781451847291.001.Suche in Google Scholar
Karagianni, S., and Μ. Pempetzoglou. 2019. “A Linear and Non-Linear Causality Analysis between Military Expenditures and External Debt in NATO Member Countries.” European Journal of Economics and Business Studies 5 (1): 37–45, https://doi.org/10.26417/ejes.v5i1.p37-45.Suche in Google Scholar
Karagol, E. 2005. “Defence Expenditures and External Debt in Turkey.” Defence and Peace Economics 16 (2): 117–25, https://doi.org/10.1080/10242690500070045.Suche in Google Scholar
Karagol, E. 2006. “The Relationship Between External Debt, Defence Expenditures and GNP Revisited: the Case of Turkey.” Defence and Peace Economics 17 (1): 47–57, https://doi.org/10.1080/10242690500369199.Suche in Google Scholar
Karagol, E., and A. Turhan. 2008. “External Debt, Defence Expenditures and Political Business Cycles in Turkey.” Defence and Peace Economics 19 (3): 217–24, https://doi.org/10.1080/10242690801972170.Suche in Google Scholar
Khan, L., I. Arif and S. Waqar. 2020. “The Impact of Military Expenditure on External Debt: The Case of 35 Arms Importing Countries.” Defence and Peace Economics (forthcoming).10.1080/10242694.2020.1723239Suche in Google Scholar
Kollias, C., G. Manolas, and S. M. Paleologou. 2004. “Military Expenditure and Government Debt in Greece: Some Preliminary Empirical Findings.” Defence and Peace Economics 15 (2): 189–97, https://doi.org/10.1080/1024269032000110559.Suche in Google Scholar
Looney, R. 1987. “Impact of Military Expenditure on Third World debt.” Canadian Journal of Developing Studies 8 (1): 7–26, https://doi.org/10.1080/02255189.1987.9670173.Suche in Google Scholar
Looney, R. 1989. “The Influence of Arms Imports on Third World debt.” Journal of Developing Areas 23 (2): 221–31.Suche in Google Scholar
Looney, R. E., and P. C. Frederiksen. 1986. “Defense Expenditures, External Public Debt and Growth in Developing Countries.” Journal of Peace Research 23 (4): 329–37, https://doi.org/10.1177/002234338602300403.Suche in Google Scholar
Muhanji, S., and K. Ojah. 2014. “External Debt and Military Spending: The Case of Africa’s Conflict Countries.” MPRA Paper, No. 56077.Suche in Google Scholar
Narayan, P. K., and S. Narayan. 2008. “Does Military Expenditure Determine Fiji’s Exploding Debt Levels?.” Defence and Peace Economics 19 (1): 77–87, https://doi.org/10.1080/10242690701453784.Suche in Google Scholar
Narayan, P. K., and R. Smyth. 2007. “The Military Expenditure-External Debt nexus: New Evidence from a Panel of Middle Eastern Countries.” Discussion Paper 17/07. Victoria-Australia: Monash University.Suche in Google Scholar
Nikolaidou, E. 2016. “The Role of Military Expenditure and Arms Imports in the Greek Debt Crisis.” The Economics of Peace and Security Journal 11 (1): 18–27, https://doi.org/10.15355/epsj.11.1.18.Suche in Google Scholar
Norrlof, C., and W. Wohlforth. 2016. “Is US Grand Strategy Self-Defeating? Deep Engagement, Military Spending and Sovereign Debt.” Conflict Management and Peace Science 36 (3): 1–21. https://doi.org/10.1177/0738894216674953.Suche in Google Scholar
Paleologou, S. M. 2013. “A Dynamic Panel Data Model for Analyzing the Relationship between Military Expenditure and Government Debt in the EU.” Defence and Peace Economics 24 (5): 419–28, https://doi.org/10.1080/10242694.2012.717204.Suche in Google Scholar
Sezgin, S. 2004. “An Empirical Note on External Debt and Defence Expenditures in Turkey.” Defence and Peace Economics 15 (2): 199–203, https://doi.org/10.1080/1024269032000110568.Suche in Google Scholar
Shahbaz, M., M. S. Shabbir, and M. S. Butt. 2013. “Does Military Spending Explode External Debt in Pakistan?.” Defence and Peace Economics 27 (5): 718–41, https://doi.org/10.1080/10242694.2012.724878.Suche in Google Scholar
Sheikh, M. R., I. S. Chaudhry, and M. Z. Faridi. 2013. “Defense Expenditures and External Debt: Evidence from Pakistan and India.” Pakistan Economic and Social Review 51 (2): 159–77.Suche in Google Scholar
Smyth, R., and P. K. Narayan. 2009. “A Panel Data Analysis of the Military Expenditure–External Debt Nexus: Evidence from Six Middle Eastern Countries.” Journal of Peace Research 46 (2): 235–50, https://doi.org/10.1177/0022343308100717.Suche in Google Scholar
Solarin, S. A. 2017. “Disaggregated Military Expenditure and the Debt Level in Nigeria.” Quality and Quantity 51 (4): 1687–705, https://doi.org/10.1007/s11135-016-0360-zz.Suche in Google Scholar
Wolde‐Rufael, Y. 2009. “The Defence Spending – External Debt Nexus in Ethiopia.” Defence and Peace Economics 20 (5): 423–36, https://doi.org/10.1080/03066150902868171.Suche in Google Scholar
Zaman, K., Q. S. Mahmood, M. M. Khan, A. Rashid, and M. Ahmad. 2012. “An Empirical Investigation of External Debt - Military Expenditure Nexus in Bangladesh.” Economia Seria Management 15 (1): 173–88.Suche in Google Scholar
Zhang, X., T. Chang, C. W. Su, and Y. Wolde-Rufael. 2016. “Revisit Causal Nexus Between Military Spending and Debt: A Panel Causality Test.” Economic Modelling 52: 939–44, https://doi.org/10.1016/j.econmod.2015.10.032.Suche in Google Scholar
© 2020 Walter de Gruyter GmbH, Berlin/Boston
Artikel in diesem Heft
- Frontmatter
- Editorial
- 4th Walter Isard Annual Award for the Best Article in Peace Economics Peace Science and Public Policy
- Research Articles
- Conceptual Ambiguity in Coding the Categories of Peace Agreement and Peace Process
- Conflict Externalization and the Quest for Peace: Theory and Case Evidence from Colombia
- Convergence or Divergence Patterns in Global Defence Spending: Further Evidence from a Nonlinear Single Factor Model
- Strategic Territorial Power-Sharing and Multi-Party Bargaining in Civil Wars
- A Literature Survey on Defense Expenditures – External Debt Nexus
Artikel in diesem Heft
- Frontmatter
- Editorial
- 4th Walter Isard Annual Award for the Best Article in Peace Economics Peace Science and Public Policy
- Research Articles
- Conceptual Ambiguity in Coding the Categories of Peace Agreement and Peace Process
- Conflict Externalization and the Quest for Peace: Theory and Case Evidence from Colombia
- Convergence or Divergence Patterns in Global Defence Spending: Further Evidence from a Nonlinear Single Factor Model
- Strategic Territorial Power-Sharing and Multi-Party Bargaining in Civil Wars
- A Literature Survey on Defense Expenditures – External Debt Nexus