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The demand for defense spending in Russia: Economic and strategic determinants

Author

Listed:
  • Christos Kollias

    (University of Thessaly, Volos, Greece)

  • Suzanna-Maria Paleologou

    (Aristotle University of Thessaloniki, Thessaloniki, Greece)

  • Panayiotis Tzeremes

    (University of Thessaly, Volos, Greece)

  • Nickolaos Tzeremes

    (University of Thessaly, Volos, Greece)

Abstract

The allocation of resources to defense and national security is influenced by several factors, both domestic and external. Findings, reported in the relevant empirical literature, suggest that military spending is determined by a cohort of economic, strategic and political factors. This paper estimates a demand function for Russian military expenditure for the period 1992–2015. The results indicate that Russian defense spending is strongly dependent on income from energy exports as well as on the overall performance of the Russian economy. Strategic factors also emerge as significant determinants of such expenditure.

Suggested Citation

  • Christos Kollias & Suzanna-Maria Paleologou & Panayiotis Tzeremes & Nickolaos Tzeremes, 2018. "The demand for defense spending in Russia: Economic and strategic determinants," Russian Journal of Economics, ARPHA Platform, vol. 4(3), pages 215-228, October.
    • Handle: RePEc:arh:jrujec:v:4:y:2018:i:3:p:215-228
    DOI: 10.3897/j.ruje.4.27086
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    Cited by:

    1. Osama D. Sweidan, 2023. "Geopolitical Risk and Income Inequality: Evidence from the US Economy," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 169(1), pages 575-597, September.

    More about this item

    Keywords

    Russian defense spending; military expenditure; GAMMs.;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War

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