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The world distribution of military spending: is there a convergence?

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  • Bansi Sawhney
  • Emmanuel Anoruo
  • William R. DiPietro

Abstract

This paper examines the issue of convergence in military spending among NATO countries. In particular, the paper employs the sequential panel selection method (SPSM) to ascertain whether the military spending of NATO countries has converged relative to that of the USA. The results from the SPSM for both the full- and sub-periods indicate that military spending of NATO countries, with the exception of Hungary, have converged to that of the USA. The results show that the number of NATO countries whose military spending converged relative to that of the USA did not change following the collapse of the Soviet Union. The overall finding of this study contradicts the alliance theory which stipulates that alliances tend to weaken or dissolve following the elimination of the unifying threat.

Suggested Citation

  • Bansi Sawhney & Emmanuel Anoruo & William R. DiPietro, 2016. "The world distribution of military spending: is there a convergence?," International Journal of Computational Economics and Econometrics, Inderscience Enterprises Ltd, vol. 6(4), pages 351-365.
    • Handle: RePEc:ids:ijcome:v:6:y:2016:i:4:p:351-365
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    Cited by:

    1. Saba Charles Shaaba, 2021. "Convergence or Divergence Patterns in Global Defence Spending: Further Evidence from a Nonlinear Single Factor Model," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 27(1), pages 51-90, February.
    2. Saba Charles Shaaba & Ngepah Nicholas, 2020. "Military expenditure and security outcome convergence in African regional economic communities: evidence from the convergence club algorithm," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 26(1), pages 1-28, February.

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