MILITARY EXPENDITURE AND GRANGER CAUSALITY: A CRITICAL REVIEW

A large literature has used tests for Granger (1969) non‐causality, GNC, to examine the interaction of military spending with the economy. Such tests answer a specific although quite limited question: can one reject the null hypothesis that one variable does not help predict another? If one can reject, there is said to be Granger causality, GC. Although the limitations of GNC tests are well known, they are often not emphasised in the applied literature and so may be forgotten. This paper considers the econometric and methodological issues involved and illustrates them with data for the US and other countries. There are three main issues. First, the tests may not be informative about the substantive issue, the interaction of military expenditure and the economy, since Granger causality does not correspond to the usual notion of economic causality. To determine the relationship of the two notions of causality requires an identified structural model. Second, the tests are very sensitive to specification. GNC testing is usually done in the context of a vector autoregression, VAR, and the test results are sensitive to the variables and deterministic terms included in the VAR, lag length, sample or observation window used, treatment of integration and cointegration and level of significance. Statistical criteria may not be very informative about these choices. Third, since the parameters are not structural, the test results may not be stable over different time periods or different countries.     

Patents and Dual-use Technology: An Empirical Study of the World's Largest Defence Companies

Abstract

This paper examines the generation of technological knowledge by leading companies in the defence industry. In particular, we test whether the characteristics of large defence companies are related to both the production of different types of patents (civilian, military and mixed), and the generation of dual-use technologies. To explore these links, we rely on economic data for the top 100 defence companies from the Stockholm International Peace Research Institute database, and patent information from the Worldwide Patent Statistical Database. Our results show that the relationship between the production of civilian patents and the size of the company is positive and significant. However, this relationship does not hold for the production of military patents. Furthermore, the military commercial profile is unrelated to the generation of military patents. Regarding the involvement in dual-use technologies, firms engaged in dual-use are those with higher military sales, a greater number of employees and a larger number of patents (civilian, military and mixed) than those not engaged in dual-use. Furthermore, we found a skill effect (more involvement in dual-use per employee) in European firms compared to US firms. These findings help to identify which firms should be targeted by government policies if increasing dual-use technologies becomes a political objective.     

CIVIL CONTROL OF THE ZAMBIAN MILITARY SINCE INDEPENDENCE

Democratic rule requires, amongst other things, orderly civil-military relations. Zambia's military, with some exceptions, have generally remained under firm civilian control, unlike many forces in the region. Initially the military was based on the British colonial model but during the struggle for independence the force was indigenised. Instead of representing a colonial power, the military came to represent a specific political viewpoint: one party participatory democracy. President Kaunda, the leader of UNIP, was chiefly responsible for the politicisation of the military and ensuring its loyalty to the ruling party. Quasi-military institutions such as the Combined Cadet Force and the Home Guard Unit were useful links between civilian and military personnel. When Frederick Chiluba, leader of the MMD, took over in 1991 he tried to make the military more professional and curb its power over civilian affairs. A defence council and parliamentary regulation were instituted to avoid further military coups.     

Staying Power and the American Future: Problems of Primacy,Policy, and Grand Strategy

Many scholars, strategists and pundits contend that the US is in decline. They argue that America's national capabilities are significantly eroding, and that with the rise of important regional powers, its primacy in world affairs is rapidly diminishing as well. Yet America continues to possess significant advantages in critical sectors such as economic size, technology, competitiveness, demography, force size, power projection, military technology, and in the societal capacity to innovate and adapt. This article argues that the nature of material problems has been overstated, and that the US should be able to withstand modest erosion in its relative strength for some time to come without losing its predominant status. Instead, where limits to American primacy do exist, they are as or more likely to be ideational as they are material. The problem inheres as much or more in elite and societal beliefs, policy choices, and political will, as in economic, technological or manpower limitations at home, or the rise of peer competitors abroad.     

Proliferation Optimism and Pessimism Revisited

Policies to counter the threat of weapons of mass destruction (WMD) have, for the most part, been modeled on strategies originally devised to counter the danger of nuclear proliferation. While useful in countering a traditional CBN (chemical/biological/nuclear)/WMD threat, current counter-proliferation and non-proliferation regimes are insufficient to meet the challenge of maritime terrorism. Maritime terrorism represents a new category of threat; one that partially overlaps with conventional WMD, but for which – due to the scope and nature of the maritime industry – traditional counter-proliferation policies may be inadequate and even inappropriate. This article outlines the means by which maritime shipping can be used as WMD and discusses the policies implemented to deal with these threats, in light of the challenges presented to traditional conceptualizations of WMD and counter-proliferation strategies.     

How Probable is Cyber War? Bringing IR Theory Back In to the Cyber Conflict Debate

Many well-established explanations for war suggest that cyber weapons have a greater chance of being used offensively than other kinds of military technologies. This response article introduces a research agenda for the study of cyber war, and offers an example – principal-agent problems in cyber operations – to demonstrate how rigorous theoretical and empirical work may proceed.     

One more push: Forcing the Dardanelles in March 1915

The historiography of the Gallipoli campaign suggests that the Turks were critically short of ammunition for the Dardanelles coastal defences in March 1915. This theme, established by Winston Churchill, became the basis for a widespread belief that the Royal Navy, after its failure to carry the Dardanelles on 18 March 1915, simply needed one more determined naval push to breakthrough the narrows. The presumed consequence was that the Ottoman Empire, with Constantinople under the guns of the Royal Navy, would have withdrawn from the war. Using modern Turkish sources, the author examines the available quantities, placement, and expenditure of ammunition, and challenges the premise that the Turks were desperately short of heavy shells. The author concludes that the Turks had sufficient remaining ammunition to fiercely contest control of the straits.     

Bayonets on Musa Dagh: Ottoman Counterinsurgency Operations – 1915

This article examines the Ottoman military's escalatory response to violence and frames the Armenian insurrection of 1915 in the historical context of contemporary early twentieth-century counterinsurgency campaigns. A case study is presented, from a military historian's perspective, of counterinsurgency operations conducted by the Ottoman Army's 41st Infantry Division against Armenian insurgents on Musa Da? (Musa Dagh) in an operational area south of Iskenderun (Alexandretta). In this particular operational area, it appears that the modern label which most closely approximates what happened there is ethnic cleansing. Finally, the article concludes with an objective assessment of the effectiveness of the Ottoman Army's counterinsurgency operations.