Citation

Kollias C, Paleologou SM. Def. Peace Econ. 2003; 14(6): 437-445.

Copyright

(Copyright © 2003, Informa - Taylor and Francis Group)

DOI

10.1080/1024269032000085206

PMID

unavailable

Abstract

By European Union and NATO standards, Greece consistently allocates substantial human and material resources to defence. The Greek defence burden (i.e. military expenditure as a share of GDP) has invariably been appreciably higher than the EU and NATO averages. The paper applies an autoregressive distributed lag model (ARDL) to present cointegrated estimates of the demand function for Greek military expenditure, in which domestic political factors and external security determinants are incorporated. Our empirical findings suggest that Greek defence spending over the period 1960-1998 has been influenced by both external security concerns, namely Turkey, as well as changes in the domestic political scene.