Concerns on the issue of defence expenditure in the post-crisis Greece

• Authors: Odysseus Katsaitis , Konstantine Kondylis , George A. Zombanakis
• Languages of publication: EN

Abstracts

EN

The paper aims to tackle a controversial issue, namely the anticipated developments regarding defence expenditure once the Greek economy returns to growth. Such a comeback is expected to occur following a prolonged recessionary period during which defence spending cuts were a top priority, as recommended by the IMF, the ECB and the EC, members of the so-called “Troika”. The paper uses both conventional econometrics as well as neural networks to consider and evaluate the hierarchy’s ordering of the determinants used in such a demand for defence expenditure based on their explanatory power. While the role of property resources is certainly pronounced, as expected, human resources variables also seem to be able to explain defence spending developments, especially in the recent past. A forecasting investigation based on this background points to a number of interesting conclusions on the anticipated developments concerning defence spending in the future as well as on the determinants of such developments which might represent a threat to NATO cohesion.

Keywords

EN

defence expenditure; economic growth; arms races

• Publisher: Akademia Sztuki Wojennej
• Journal: Security and Defence Quarterly
• Year: 2019
• Volume: 24
• Issue: 2
• Pages: 177-201

Dates

published

2019-06-28

Contributors

author

Odysseus Katsaitis

• Department of Economics, The American College of Greece

author

Konstantine Kondylis

• Department of Economics, The American College of Greece

author

George A. Zombanakis

• Department of Economics, The American College of Greece

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Identifiers

DOI

10.35467/sdq/103408