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From the great illusion to the Great War: Military spending behaviour of the Great Powers, 1870–1913

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  • ELORANTA, JARI

Abstract

The purpose of this article is to re-evaluate the military spending dynamics leading to the First World War, namely to explore the impact of the declining military and economic leadership of the UK and the economic emergence of the USA. Individual countries responded to threats from perceived enemies and spillovers from potential allies rationally, yet often going beyond the bounds of traditional alliances. In a sixteen-country system, the military reticence of the UK and USA encouraged higher military spending by other states, which suggests that Germany was not responsible for the arms race alone. Aggregate systemic military spending also incurred higher individual spending levels, whereas alliance impacts were not consistent.

Suggested Citation

  • Eloranta, Jari, 2007. "From the great illusion to the Great War: Military spending behaviour of the Great Powers, 1870–1913," European Review of Economic History, Cambridge University Press, vol. 11(2), pages 255-283, August.
    • Handle: RePEc:cup:ereveh:v:11:y:2007:i:02:p:255-283_00
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    Cited by:

    1. José M. Ortiz-Villajos & José J. Martos-Gómez, 2024. "Military Technology, Defense Spending and Modernization of the Armed Forces: The Case of Spain, 1891-1935," Defence and Peace Economics, Taylor & Francis Journals, vol. 35(7), pages 883-907, October.
    2. Max Hantke & Mark Spoerer, 2010. "The imposed gift of Versailles: the fiscal effects of restricting the size of Germany's armed forces, 1924–9," Economic History Review, Economic History Society, vol. 63(4), pages 849-864, November.
    3. Ciccarelli, Carlo & Nuvolari, Alessandro, 2015. "Technical Change, Non-Tariff Barriers, and the Development of the Italian Locomotive Industry, 1850–1913," The Journal of Economic History, Cambridge University Press, vol. 75(3), pages 860-888, September.
    4. Rota, Mauro, 2011. "Military Burden and the Democracy Puzzle," MPRA Paper 35254, University Library of Munich, Germany.
    5. Konstantin Yanovskiy & Sergey Zhavoronkov & Dmitry Shestakov, 2013. "Democracy of "Taxation-Redistribution" and Peacetime Budget Deficit," Working Papers 0078, Gaidar Institute for Economic Policy, revised 2013.
    6. Rota, Mauro, 2016. "Military spending, fiscal capacity and the democracy puzzle," Explorations in Economic History, Elsevier, vol. 60(C), pages 41-51.

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