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a Saudi Arabian military spending (1990–2012). b Saudi Arabian overall globalization index (1990–2012). Source KOF and SIPRI
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Despite the fact that previous studies have extensively investigated the causal nexus between military expenditure and economic growth in both developed and developing countries, those studies have not considered the role of globalization. The aim of this study is to examine the relationship between militarism and globalization for the top 15 milit...
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... For instance, a growing body of literature examines the connections between militarism and economic development. This vein of research includes several of the aforementioned empirical treatments of militarization as well as examinations using the broader definitions of the term (see Acemoglu and Yared 2010;Dreze 2000;Irandoust 2018;Zafirovski 2020). Other researchers highlight the intersection of militarism and education (see Kershner and Harding 2019), militarism and professional sports (see Butterworth 2012;Lipsky 1981;and Wakefield 1997), and militarism and feminism (see Cockburn 2010;and Wibben 2018 for examples). ...
... So, the study suggested that this causality relationship is predominantly affected by countryspecific characteristics. Irandoust (2018) has examined the nexus between economic growth and military expenditures by taking into consideration the role of globalization. The study has explored the relationship for the top 15 countries in military expenditures, covering the time period from 1990 to 2012. ...
With modernization, ideological shifts and economic interdependency, the concept of globalization has expanded vastly. Though the world is unipolar, still the international competition remains prevalent that poses serious threats to regional conflicts. The great powers of the world are still competing with each other for influence over other countries. Thus, the role of militarization cannot be ignored in this context. Thus, it would be interesting to examine the impact of military expenditures on the globalization process through the spill-over effects, along with their relationship with economic growth. The study employed panel data consisting of African countries, covering the time period from 2001 to 2014. The econometric estimation is done through the application of spatial econometric techniques, that is, the spatial autoregressive fixed effect model and spatial Durbin fixed effect model. The study has found a positive relationship between economic growth and globalization but a negative relationship was found between military expenditures and economic growth.
... However, literature has also revealed the downside effects of trade. For example, Irandoust (2018) noted that globalisation increased militarization. Feng et al. (2018) observed that countries with a common border showed evidence of corruption due to the transfer of illegal goods. ...
Oman’s regional trade flow, especially with the Indian Ocean Rim countries, is examined within a gravity model framework. The analysis is based on the generalised method of moments ( GMM ) estimation procedure. The findings show that Oman’s exports are strongly determined by the Indian Ocean Rim countries’ populations, gross domestic product, infrastructure, Oman’s trade policy and a common border and language. Distance is found to induce significant friction for Oman’s imports. We conclude that the Indian Ocean Rim countries are sources of active markets and provide opportunities for greater trade integration. In light of the dramatic decline in world oil prices in recent years, Oman also needs to reduce its reliance on oil earnings and intervene more aggressively in its domestic economy by diversifying its non-oil sector and concentrate more on non-oil led exports.
... If yes, we are confronted with a serious case of political failure. This is not merely a theoretical proposition; it is anchored in a solid empirical foundation that suggests as follows: "We emphasize that globalization, which depends on political decisions by nation-states, has political limits, and these limits are related to nationalism and militarism" (see Acemoglu and Yared 2010;Manuchehr 2018). Empirical studies encompass a large number of countries considered in the present article. ...
Asymmetry in knowledge and bargaining power creates opportunities for duplicity and
malpractice. Based on the experiences of the Asian medicine market, we propose that
this economic sector is particularly susceptible to these vices. The visible hand
of the government appears to be more effective in disciplining malefactors than the
invisible hand of the market. This thesis is based on areas of knowledge such as political
science, ethics, and philosophy that remain, in general, off limits to economists
wishing to maintain the purity of the discipline.
... It relates to shifts in global markets typically outside of the influence of individual countries. (Irandoust 2018). The study argued that globalisation has a cause and effect relations in constructing conflicts and influenced national security notably. ...
Previous scholars had extensively provided a well researched causal nexus between military expenditure and economic growth within broad range of states and nations. Unsurprisingly, national security is a subject which covers a broad range of issues and threats which will be handled intricately via governance and statecraft. The purpose of this study is to identify the factors which determines how does the military will become the “integral” element of national power. Nevertheless, the empirical understanding of how does elements of national power interacts and influence national goal and behaviour were seen as a crucial “threshold” that enable an evocative understanding on how does these elements interacts, as a result states are able to co- exist within the international system. The findings will establish a well-defined illustration of the military “causal-relation” within the national power calculus. The mixed method research design was applied in this study so as to examine the causal- relationship amongst the elements of national power focusing on the military. A cross- national approach was embedded within the study in order to give an overview comparative perspective with the unit of analysis at the state level i.e.: Malaysia and international system (selected Indo-Pacific nations). The most significant observation being made in this study would be the ability to proof the causal-relationship of military power within the national power schematics through empirical mixed methodological approach. In brief, integrality is observed, military power promotes peace and national behaviour within the international system. The military provides the critical need to provide safe and secure environment through the application of what is known as an “active power”. A Causal-relation model through the integration of Cline’s Perceived Power Model and Lowy Institute Power Index Variables able to describe and explain military power within the context of national power. Thus, the concept of “the will to response to threat” is considered natural and primal national behaviour and Malaysia able to adapt and adopt the model to facilitate its own national decision-making mechanism.
... Kabaca, küreselleşme ile militarizm-askeri harcamalar ilişkisi temelinde ele alınan konu hakkında özellikle ampirik literatürde sınırlı sayıda çalışmanın (Acemoğlu ve Yared 2010; Smith 2012; Wu vd. 2016;Irandoust 2017;Solarin 2017) olduğu görülmektedir. Dolayısı ile bu alanda özellikle ampirik literatürde ciddi bir eksikliğin olduğu ifade edilebilir. ...
... Korelasyon, regresyon ve nedensellik gibi geleneksel panel veri yöntemlerden yararlanılarak yapılan tahmin sonucunda, küreselleşmenin yoksulluk ve çatışmaları azalttığı, çatışmasızlığın ve refahın dengeli dağılımının ise küreselleşmeye katkı sağladığı şeklinde ampirik kanıtlar elde edilmiştir. Son olarak Irandoust (2017), 1990-2012 dönemi için yaptığı çalışmada, dünyada en yüksek askeri harcamaya sahip 15 ülkede küreselleşme ve militarizm ilişkisini araştırmıştır. Bootstrap panel nedensellik testinin kullanıldığı ampirik analizde, militarizmdeki artışın ülkeler arasındaki çatışma ihtimalini artırarak küreselleşmeyi olumsuz etkilediğini ortaya koymuştur. ...
Bu çalışmanın amacı, militarizm ve küreselleşme ilişkisini ampirik olarak araştırmaktır.11 MENA ülkesi ve Türkiye’nin 1980-2016 döneminin dikkate alındığı çalışmada, ikinci nesil panel nedensellik testleri [Kònya (2006) bootstrap, Emirmahmutoğlu ve Köse (2011), Dumitrescu ve Hurlin (2012)] kullanılmıştır. Bu testlerden elde edilen ortak bulgulara göre; militarizm ve küreselleşme arasında nedensellik ilişkisinin olup olmadığı ve eğer varsa yönü ele alınan ülkeler arasında farklılık göstermektedir. Buna göre; Türkiye, Cezayir, İran, Kuveyt ve Lübnan’da militarizm ve küreselleşme arasında anlamlı bir nedensellik ilişkisi yoktur. Mısır, İsrail, Ürdün, Fas ve Umman’da militarizm küreselleşmenin bir nedeni iken, Bahreyn’de küreselleşme militarizmin nedenidir. Suudi Arabistan’da ise militarizm ve küreselleşme arasında çift yönlü bir nedensellik ilişkisi söz konusudur. Militarizmin küreselleşme için bir tehdit oluşturduğunu gösteren ampirik kanıtlar aynı zamanda, küreselleşme düzeyindeki artışın militarizmi zayıflattığını ileri süren liberal yaklaşımı da güçlü bir biçimde desteklemektedir.
Change of the intellectual climate after the WWI and WWII and great recession, which was in favor of small and limited state toward big, extensive welfare state was very well incorporated in interests of political elites in order to put fiscal and monetary policy in the function of their interests. Instead of principle of balanced budget decision makers accepted principles of functional finances. In industrial states this change within one century have made government consumption four times higher.
Big increase of government spending that was not followed by increase of state revenues has led to constant deficits. Budget deficit and “non-planned” bailout of private obligations (bank bailouts, companies, guarantee of deposits, revenues in the public private partnership contracts etc) were main reasons for increase of public debts to the levels of historical maximum.
Modern monetary theory creates illusion that in the states with their own currencies public debts could be eternally financed by printing of money. States that implemented these policies in the past faced these consequences. For Montenegro that uses euro illusion of monetary financing of debt is not possible. That is the reason why level, maturity and structure of public debt in Montenegro is extremely important. With high debts all, especially small and euroized economies are exposed to external shocks. Change of climate at international economic and financial market could leave country without fiscal response and possibility to pay obligations in due time.
This paper contributes to the literature on military expenditure by examining the relationship between military expenditure and inequality in the distribution of income in a panel set of top ten defence spenders over 1990 to 2015, including also wide specification of control variables. In particular, we explore the impact of military spending on three different measures of inequality, (i) Gini Measure, (ii) Theil Measure and iii) Income shared by the top 20 per cent of the population. Further, we also utilize different concepts of military spending in our analysis. The findings highlight that the impact of military spending on income inequality is negative. The findings are based on second generation panel estimation techniques. One per cent rise in military expenditure explored through the Dynamic Common Correlated Effects Estimation reduces Gini inequality by 2.90 per cent, reduces Theil measure of inequality by 0.12 per cent and reduces Top 20 per cent measure of inequality by 11 per cent. The findings of inequality reducing the impact of military expenditure are confirmed through alternative robustness tests. However, there are also some conflicting conclusions, for example, the application of the non-linear function of military expenditure makes the results sensitive to the different specification of inequality.
I analyze the effects of economic and informational globalization on the diffusion
of military capabilities in the 20th and 21st centuries. To test these relationships, I use the KOF Swiss Economic Institute’s data on economic and informational globalization and the Correlates of War data on National Material Capabilities for all states of the international system from 1970 to 2011. Using an Ordinary Least Squares (OLS) regression of all states with standard errors clustered at the state-level, I find that economic globalization negatively correlates with increases in military capabilities; while informational globalization positively correlates with increases in military capabilities. These findings suggest increases in economic globalization leads states to pursue an antithetical approach towards military capabilities, thereby lending support to the argument that economic interdependence decreases the likelihood of interstate conflict. However, the augmentation of informational globalization appears to validate previous arguments which posit that the prevalence of information technology systems is enlarging the military capabilities of states.
