An Empirical Analysis of the Arms Race Between South and North Korea

This study analyses an arms race between South and North Korea over the period 1963–2000. Despite the strategic importance of the Korean Peninsula, the arms race between South and North Korea has rarely been studied. In this study, the South–North arms race is empirically estimated using Richardson’s action–reaction model. The pattern of South–North arms race between the Cold War (1963–1989) and the post‐Cold War eras (1990–2000) as well as the existence of an arms race is examined comparing both countries’ defence spending, number of military personnel and tactical aircraft.     

Military Spending and Income Inequality:Evidence on Cointegration and Causality for Turkey,1963–2007

This paper investigates a series of unit root, cointegration and causality tests to ascertain the direction of causality between the growth of GNP and defence expenditure in Turkey for the years 1955–2000. The main conclusion is that there is a long‐run equilibrium relationship between GNP and defence expenditures. Furthermore, the short run causality test indicates that there is a unidirectional causality between variables, from defence expenditure to economic growth. In order to see the effect of a shock, we employed impulse response analyses. The results show that GNP decreased during the period then output finally recovered from the initial shock to defence expenditures.     

EFFECTS OF MILITARY SPENDING ON THE PROFITABILITY OF SPANISH DEFENCE CONTRACTORS

The traditional view of the defence industry obtaining large profits from contracts with the Ministry of Defence relies on several assumptions. Among these are the use of such arrangements as an instrument of industrial policy, the strong market power enjoyed by prime contractors, and the inefficiency encouraged by the sector. The findings show that defence contracts have a positive effect on profits, as well as the prizes for innovation and the market power enjoyed by some defence subsectors.     

A PRODUCTIVITY AND EFFICIENCY ANALYSIS OF THE SECURITY AND DEFENCE TECHNOLOGICAL AND INDUSTRIAL BASE IN SPAIN

This study analyses the performance of the productivity of the main industrial subsectors composing the security and defence technological and industrial base (SDTIB) in Spain from 1996 to 2009. Accordingly, we have used the non-parametric data envelopment analysis and bootstrapping techniques to compute Malmquist productivity indexes that allow us to split productivity growth into efficiency change and technical progress. The results obtained show productivity improvement in the SDTIB as a whole due mainly to advances in technology and to a lesser extent to the contribution of technical efficiency. The bootstrap approach yields further evidence, as for many cases, productivity growth or decline, is not statistically significant. This is the first time a study of this kind has been carried out on the production process of this sector in Spain.     

ACCRUAL BUDGETING AND DEFENCE FUNDING: THEORY AND SIMULATIONS

This paper explores the impact of moving to accrual budgeting on resources allocation in defence. Standard defence budgeting and investment models are used to assess the theoretical implications of accrual budgeting. In addition, a number of simulations are conducted to assess the long-term implications of moving to accrual accounting and budgeting. The result of the simulations shows that changes to deployed operations and other operational shocks will have manageable impacts on readiness but systematic shocks associated with defence unit prices, procurement policies and defence specific inflation will put considerable strain on the defence department's flexibility.     

Guns for Butter? Empirical Evidence from China

Abstract

This study examines the causal nexus between defence spending and education expenditure in China using the bootstrap Granger full-sample causality test and sub-sample rolling window estimation. The full-sample result indicates that there is no causality between defence spending and education expenditure. By adopting a time-varying rolling window approach to revisit the dynamic causal relationships, this article identifies a negative unidirectional causality running from education expenditure to defence spending. The finding suggests that it is the education expenditure crowds out defence spending in China rather than reverse. No causality is demonstrated from defence spending to education expenditure, indicating that an increase in military spending will not crowd out expenditure on education. The results could be partly explained by that the education expenditure in China is below the requirement of corresponding economic growth, urging for more financial budget. Whereas the findings support a negative trade-off between defence and education expenditures, they refute the theory of ‘guns for butter’.     

Comparative analysis of Arab Spring determinants

The Arab Spring, a pro-democracy uprising that has been sweeping through North Africa and the entire Arab world since 2010, has been described as a cataclysmic revolutionary wave that has left the overthrow of political regimes in its wake. Studies have comprehensively x-rayed the political and socio-economic circumstances that gave rise to the uprising. Apart from the impact of the uprising on political developments and democratic governance in the Arab world in particular and the world in general, the circumstances that resulted in the revolutions constitute empirical security implications for Nigeria. This is the focus of this article. Using the Ibrahim Index of African Governance (IIAG) and other selected indicators, this article draws a comparative analysis of the key factors that led to the uprisings in Egypt, Libya and Tunisia, pointing out areas of social and security tensions in Nigeria. Based on these findings, it points out the urgency of and imperative for security sector reforms in Nigeria.     

In spite of reform: NATO HQ still in the grips of nations

Security Intergovernmental Organizations, here illustrated by NATO, persist in a “permitted interval” of internationalization, i.e. permitted by its member-states. On the one hand, they are seldom or never permitted to vanish due to member-states' vested interests in retaining them as tools of statecraft, even if their original purposes have become redundant. On the other hand, there is an internationalization ceiling that they must respect: they should not become too autonomous and thereby no longer be suitable as member-state tools. In spite of post-Cold War reform, interviews carried out at NATO Headquarters (HQ) in the late 1980s compared to interviews in 2012 display that a continuous pulling and hauling of forces of internationalization and renationalization have taken place around NATO HQ. The only instance of clear internationalization can be observed in the proactive diplomacy of Secretary General Fogh Rasmussen. There is stiff opposition to the internationalization of abolishing the Military Committee/International Military Staff among minor and South European states, and there is no waning in states' attempts to micro-manage the International Staff. Only external shocks can overcome resistance to internationalizing reform.