IDEAS home Printed from https://ideas.repec.org/a/bla/kyklos/v77y2024i4p1026-1047.html
   My bibliography  Save this article

A spatial analysis of NATO burden sharing at the operational levels

Author

Listed:
  • Justin George
  • Todd Sandler

Abstract

The paper applies connectivity measures—membership status, contiguity, inverse distance, and power projection—to investigate North Atlantic Treaty Organization (NATO) defense burden sharing at the operational or (defense spending) categorical levels (i.e., personnel, infrastructure, equipment, and operations and maintenance [O&M]) during the post‐Cold War era, 1991–2022. Alternative spatial weights, assigned to allies' operational‐based spillovers, indicate diverse free‐riding responses with the greatest free riding characterizing equipment, followed by O&M and then personnel outlays. Infrastructure spending, which does not permit much substitution among allies, is understandably characterized by the least inter‐ally free riding. After the Wales Summit and Russia's invasion of Crimea in 2014, there are marked changes to NATO free riding at the operational levels, with equipment spending displaying reduced free riding. Generally, there is little evidence of a positive reaction to increased Russian military expenditures; however, there is some enhanced operational spending by NATO allies nearest to Russia after 2014. Also, we estimate simultaneous spatial autoregressive models to gauge inter‐operational spending responses to the four kinds of spillovers, where we find interesting inter‐operational substitutions and complementarities.

Suggested Citation

  • Justin George & Todd Sandler, 2024. "A spatial analysis of NATO burden sharing at the operational levels," Kyklos, Wiley Blackwell, vol. 77(4), pages 1026-1047, November.
    • Handle: RePEc:bla:kyklos:v:77:y:2024:i:4:p:1026-1047
    DOI: 10.1111/kykl.12401
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/kykl.12401
    Download Restriction: no
    File URL: https://libkey.io/10.1111/kykl.12401?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Jakub Odehnal & Jiří Neubauer, 2020. "Economic, Security, and Political Determinants of Military Spending in NATO Countries," Defence and Peace Economics, Taylor & Francis Journals, vol. 31(5), pages 517-531, July.
    2. Sandler,Todd & Hartley,Keith, 1999. "The Political Economy of NATO," Cambridge Books, Cambridge University Press, number 9780521630931, November.
    3. M Ensar Yesilyurt & J Paul Elhorst, 2017. "Impacts of neighboring countries on military expenditures," Journal of Peace Research, Peace Research Institute Oslo, vol. 54(6), pages 777-790, November.
    4. Thomas de Graaff & Frank G. van Oort & Raymond J.G.M. Florax, 2012. "Regional Population–Employment Dynamics Across Different Sectors Of The Economy," Journal of Regional Science, Wiley Blackwell, vol. 52(1), pages 60-84, February.
    5. Sandler, Todd & Hartley, Keith, 1999. "The Political Economy of Nato: Past, Present, and into the 21st Century," Staff General Research Papers Archive 1441, Iowa State University, Department of Economics.
    6. George, Justin & Sandler, Todd, 2018. "Demand for military spending in NATO, 1968–2015: A spatial panel approach," European Journal of Political Economy, Elsevier, vol. 53(C), pages 222-236.
    7. Kelejian, Harry H & Prucha, Ingmar R, 1998. "A Generalized Spatial Two-Stage Least Squares Procedure for Estimating a Spatial Autoregressive Model with Autoregressive Disturbances," The Journal of Real Estate Finance and Economics, Springer, vol. 17(1), pages 99-121, July.
    8. Leonard Dudley & Claude Montmarquette, 1981. "The demand for military expenditures: An international comparison," Public Choice, Springer, vol. 37(1), pages 5-31, January.
    9. Murdoch, James C. & Sandler, Todd, 1984. "Complementarity, free riding, and the military expenditures of NATO allies," Journal of Public Economics, Elsevier, vol. 25(1-2), pages 83-101, November.
    10. Cornes,Richard & Sandler,Todd, 1996. "The Theory of Externalities, Public Goods, and Club Goods," Cambridge Books, Cambridge University Press, number 9780521477185, November.
    11. Marion Bogers & Robert Beeres & Myriame Bollen, 2022. "NATO Burden Sharing Research along Three Paradigms," Defence and Peace Economics, Taylor & Francis Journals, vol. 33(5), pages 534-547, July.
    12. Smith, R P, 1980. "The Demand for Military Expenditure," Economic Journal, Royal Economic Society, vol. 90(363), pages 811-820, December.
    13. Wukki Kim & Todd Sandler, 2020. "NATO at 70: Pledges, Free Riding, and Benefit-Burden Concordance," Defence and Peace Economics, Taylor & Francis Journals, vol. 31(4), pages 400-413, June.
    14. Todd Sandler, 1977. "Impurity Of Defense: An Application To The Economics Of Alliances," Kyklos, Wiley Blackwell, vol. 30(3), pages 443-460, August.
    15. Paul Dunne & Sam Perlo-Freeman, 2003. "The Demand for Military Spending in Developing Countries," International Review of Applied Economics, Taylor & Francis Journals, vol. 17(1), pages 23-48.
    16. Kelejian, Harry H. & Prucha, Ingmar R., 2004. "Estimation of simultaneous systems of spatially interrelated cross sectional equations," Journal of Econometrics, Elsevier, vol. 118(1-2), pages 27-50.
    17. Jordan Becker, 2017. "The correlates of transatlantic burden sharing: revising the agenda for theoretical and policy analysis," Defense & Security Analysis, Taylor & Francis Journals, vol. 33(2), pages 131-157, April.
    18. J. Paul Dunne & Sam Perlo-Freeman, 2003. "The demand for military spending in developing countries: A dynamic panel analysis," Defence and Peace Economics, Taylor & Francis Journals, vol. 14(6), pages 461-474.
    19. Christos Kollias, 2008. "A Preliminary Investigation Of The Burden Sharing Aspects Of A European Union Common Defence Policy," Defence and Peace Economics, Taylor & Francis Journals, vol. 19(4), pages 253-263.
    20. Martin C. McGuire & Carl H. Groth, 1985. "A Method for Identifying the Public Good Allocation Process Within a Group," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 100(Supplemen), pages 915-934.
    21. Mohamed Douch & Binyam Solomon, 2014. "Middle Powers And The Demand For Military Expenditures," Defence and Peace Economics, Taylor & Francis Journals, vol. 25(6), pages 605-618, December.
    22. Khusrav Gaibulloev & Todd Sandler, 2019. "What We Have Learned about Terrorism since 9/11," Journal of Economic Literature, American Economic Association, vol. 57(2), pages 275-328, June.
    23. Christopher F Baum & Mark E. Schaffer & Steven Stillman, 2007. "Enhanced routines for instrumental variables/generalized method of moments estimation and testing," Stata Journal, StataCorp LP, vol. 7(4), pages 465-506, December.
    24. repec:bla:kyklos:v:30:y:1977:i:3:p:443-60 is not listed on IDEAS
    25. Edward Hunter Christie, 2019. "The Demand for Military Expenditure in Europe: The Role of Fiscal Space in the Context of a Resurgent Russia," Defence and Peace Economics, Taylor & Francis Journals, vol. 30(1), pages 72-84, January.
    26. Keith Hartley & Todd Sandler, 2001. "Economics of Alliances: The Lessons for Collective Action," Journal of Economic Literature, American Economic Association, vol. 39(3), pages 869-896, September.
    27. Yang Xiaoxin & Chen Bo, 2021. "Defense Burden and the Effect of Others: From Neighbors to Allies," Defence and Peace Economics, Taylor & Francis Journals, vol. 32(8), pages 927-940, November.
    28. Sandler, Todd & Forbes, John F, 1980. "Burden Sharing, Strategy, and the Design of NATO," Economic Inquiry, Western Economic Association International, vol. 18(3), pages 425-444, July.
    29. Binyam Solomon, 2005. "The demand for Canadian defence expenditures," Defence and Peace Economics, Taylor & Francis Journals, vol. 16(3), pages 171-189.
    30. Justin George & Todd Sandler, 2022. "NATO defense demand, free riding, and the Russo-Ukrainian war in 2022," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 49(4), pages 783-806, December.
    31. Tim Haesebrouck, 2022. "NATO Burden Sharing after the Wales Summit: A Generalized Set Qualitative Analysis," Defence and Peace Economics, Taylor & Francis Journals, vol. 33(6), pages 637-654, August.
    32. Gebremeskel H. Gebremariam & Tesfa G. Gebremedhin & Peter V. Schaeffer, 2011. "Employment, Income, And Migration In Appalachia: A Spatial Simultaneous Equations Approach," Journal of Regional Science, Wiley Blackwell, vol. 51(1), pages 102-120, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wukki Kim & Todd Sandler & Hirofumi Shimizu, 2024. "An expanded investigation of alliance security free riding," Global Policy, London School of Economics and Political Science, vol. 15(4), pages 570-582, September.
    2. Justin George & Todd Sandler, 2021. "EU Demand for Defense, 1990–2019: A Strategic Spatial Approach," Games, MDPI, vol. 12(1), pages 1-18, February.
    3. Justin George & Todd Sandler, 2022. "NATO defense demand, free riding, and the Russo-Ukrainian war in 2022," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 49(4), pages 783-806, December.
    4. George, Justin & Sandler, Todd, 2018. "Demand for military spending in NATO, 1968–2015: A spatial panel approach," European Journal of Political Economy, Elsevier, vol. 53(C), pages 222-236.
    5. Oliver Pamp & Florian Dendorfer & Paul W. Thurner, 2018. "Arm your friends and save on defense? The impact of arms exports on military expenditures," Public Choice, Springer, vol. 177(1), pages 165-187, October.
    6. Thomas Plümper & Eric Neumayer, 2015. "Free-riding in alliances: Testing an old theory with a new method," Conflict Management and Peace Science, Peace Science Society (International), vol. 32(3), pages 247-268, July.
    7. Ghislain Dutheil de la Rochère & Jean-Michel Josselin & Yvon Rocaboy, 2011. "The role of aggregation technologies in the provision of supranational public goods: A reconsideration of NATO’s strategies," The Review of International Organizations, Springer, vol. 6(1), pages 85-103, March.
    8. M. Dolores Gadea & Eva Pardos & Claudia Perez-Fornies, 2004. "A Long-Run Analysis Of Defence Spending In The Nato Countries (1960-99)," Defence and Peace Economics, Taylor & Francis Journals, vol. 15(3), pages 231-249.
    9. Olejnik, Łukasz Wiktor, 2024. "Left-wing butter vs. right-wing guns: Government ideology and disaggregated military expenditures," ZEW Discussion Papers 24-026, ZEW - Leibniz Centre for European Economic Research.
    10. Douch Mohamed & Solomon Binyam, 2018. "Status or Security: The Case of the Middle East and North Africa Region," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 24(3), pages 1-12, September.
    11. Todd Sandler, 1993. "The Economic Theory of Alliances," Journal of Conflict Resolution, Peace Science Society (International), vol. 37(3), pages 446-483, September.
    12. Johannes Blum, 2021. "Democracy’s third wave and national defense spending," Public Choice, Springer, vol. 189(1), pages 183-212, October.
    13. Sandler, Todd, 2001. "On financing global and international public goods," Policy Research Working Paper Series 2638, The World Bank.
    14. Todd Sandler, 2024. "Tiebout jurisdictions and clubs," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 73(3), pages 857-872, October.
    15. Sheng-Tung Chen & Jyun-Wei Lai & Arwin Pang, 2015. "The effect of military service system change on the demand for military expenditure," Defence and Peace Economics, Taylor & Francis Journals, vol. 26(6), pages 623-633, December.
    16. Young‐Wan Goo & Seung‐Nyeon Kim, 2012. "Time-Varying Characteristics Of South Korea-United States And Japan-United States Military Alliances Under Chinese Threat: A Public Good Approach," Defence and Peace Economics, Taylor & Francis Journals, vol. 23(1), pages 95-106, February.
    17. Yang, Kai & Lee, Lung-fei, 2017. "Identification and QML estimation of multivariate and simultaneous equations spatial autoregressive models," Journal of Econometrics, Elsevier, vol. 196(1), pages 196-214.
    18. Bernhard Klingen, 2011. "A Public Choice Perspective on Defense and Alliance Policy," Chapters, in: Christopher J. Coyne & Rachel L. Mathers (ed.), The Handbook on the Political Economy of War, chapter 17, Edward Elgar Publishing.
    19. Todd Sandler, 2005. "Nato Benefits, Burdens And Borders: Comment," Defence and Peace Economics, Taylor & Francis Journals, vol. 16(4), pages 317-321.
    20. Todd Sandler, 1999. "Alliance Formation, Alliance Expansion, and the Core," Journal of Conflict Resolution, Peace Science Society (International), vol. 43(6), pages 727-747, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:kyklos:v:77:y:2024:i:4:p:1026-1047. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0023-5962 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.