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Trade and Military Alliances: Evidence from NATO

Author

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  • Callado-Muñoz Francisco J.

    (Centro Universitario de la Defensa de Zaragoza, Academia General Militar, Ctra. de Huesca s/n, 50090 Zaragoza, Spain, Phone: +34 97 673 9804, Fax: 976 739 824)

  • Hromcová Jana

    (ESSCA, School of Management, 55 quai Alphonse le Gallo, 92513 Boulogne-Billancourt and NEOMA Business School, 1 Rue du Maréchal Juin, 76130 Mont-Saint-Aignan, France)

  • Utrero-González Natalia

    (Centro Universitario de la Defensa de Zaragoza, Academia General Militar, Ctra. de Huesca s/n, 50090 Zaragoza, Spain)

Abstract

In this paper we analyse the effect of multilateral defence alliances in arms trade among allies. We postulate that the access to the frontier technology weaponry enabled only to military allies will intensify arms trade. The benefits of such trade are claimed to be in security and technology diffusion. We execute an empirical analysis for the North Atlantic Treaty Organization (NATO). Results show that being a member or partner of NATO significantly increases arm imports coming from the alliance, and that this increase cannot be attributed to economic and additional country characteristics.

Suggested Citation

  • Callado-Muñoz Francisco J. & Hromcová Jana & Utrero-González Natalia, 2019. "Trade and Military Alliances: Evidence from NATO," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 25(4), pages 1-8, December.
    • Handle: RePEc:bpj:pepspp:v:25:y:2019:i:4:p:8:n:2
    DOI: 10.1515/peps-2019-0027
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    More about this item

    Keywords

    arms trade; defence; military alliance;
    All these keywords.

    JEL classification:

    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies

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