Please use this identifier to cite or link to this item: https://hdl.handle.net/20.500.11851/7613
Title: The Determinants of Defense Spending in the Gulf Region
Authors: Yalta, Abdullah Talha
Yalta, Ayşe Talha
Keywords: Demand for defense
security web
GCC countries
Iran
Iraq
3SLS
Issue Date: 2021
Publisher: Taylor & Francis Ltd
Abstract: We examine the determinants of military spending of the six countries in the Gulf Region by using a partial adjustment model in a system setting estimated with the three-stage least squares (3SLS) method. Our model takes into consideration the institutional inertia as well as intercountry correlations, both observed and unobserved. In addition to economic variables, we also consider a series of strategic variables to shed light on various issues such as free riding and spill-in effects. Our findings based on annual data between 1980 and 2016 indicate that the military expenditures are influenced by both economic and strategic factors with a high degree of heterogeneity across different countries. Our results also show that the GCC member countries do not free ride on each others' military expenditures. In addition, the US military presence is an important determinant of defense spending in the region.
URI: https://doi.org/10.1080/10242694.2021.1918857
https://hdl.handle.net/20.500.11851/7613
ISSN: 1024-2694
1476-8267
Appears in Collections:İktisat Bölümü / Department of Economics
Scopus İndeksli Yayınlar Koleksiyonu / Scopus Indexed Publications Collection
WoS İndeksli Yayınlar Koleksiyonu / WoS Indexed Publications Collection

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