The demand for military spending in Egypt

Abu-Qarn, A. S., Dunne, J. P., Abdelfattah, Y. and Zaher, S. (2013) The demand for military spending in Egypt. Defence and Peace Economics, 25 (3). pp. 231-245. ISSN 1024-2694

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Publisher's URL: http://dx.doi.org/10.1080/10242694.2013.763454

Abstract

Egypt plays a pivotal role in the security of the Middle East as the doorway to Europe and its military expenditure reflects its involvement in the machinations of such an unstable region, showing considerable variation over the last forty years. These characteristics make it a particularly interesting case study of the determinants of military spending. This paper presents such a study, estimating an econometric model of the Egyptian demand for military spending, taking into account important strategic and political factors. Both economic and strategic factors are found to play a role in determining military burden, with clear positive effects of lagged military burden, suggesting some sort of institutional inertia, plus negative output and net imports effects. The main strategic effect is the impact of Israel’s military burden, with no effect for that of the Jordanian and Syrian allies, but the results also suggest that simple arms race relationships are not an adequate representation of the relevant strategic factors.

Item Type:Article
Additional Information:This is an Accepted Manuscript of an article published by Taylor & Francis Group in Defence and Peace Economics in 2014, available online at: http://www.tandfonline.com/10.1080/10242694.2013.763454 Published online: 25 Feb 2013
Uncontrolled Keywords:Egypt, demand for military expenditure, political determinants, strategic determinants
Faculty/Department:Faculty of Business and Law > Department of Accounting, Economics and Finance
ID Code:12170
Deposited By: Professor J. Dunne
Deposited On:06 Jan 2011 09:55
Last Modified:08 Sep 2014 06:43

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