EKONOMICKÉ DETERMINANTY VOJENSKÝCH VÝDAJŮ – KAUZÁLNÍ ANALÝZA
Economic determinants of military spending – causal analysis
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The current developments in the NATO countries suffering from deficit in public finances intensify pressures for cutting military expenditure which is noticeable in the NATO countries as well where only a small group of countries fulfils the recommended 2% of GDP investment in military expenditure. This paper employs the Granger causality test and change point analysis to verify the theoretical relationship between the economic determinants of military expenditure and the level of military expenditure for chosen NATO member countries (France, Germany and Great Britain) over the period 1971 – 2012. Data were selected from the SIPRI and OECD databases. The findings suggest that defence spending in France, Germany and Great Britain is not determined by the economic growth.
1019 – 1032
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