The Economic Determinants of Military Expenditure in Selected East Asian Countries
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This paper examines the economic determinants of defence spending in six East Asian countries: Indonesia, Malaysia, South Korea, Singapore, Thailand, and the Philippines. It is hypothesized that economic factors play an important role in determining military spending levels in these countries. Our results, which support the earlier work by Geoffrey Harris, suggest that economic variables and resource availability are probably the main determinants of miiitary expenditures. Three basic patterns were found: stabilization, augmentation, and distributed lags. While all countries increased their defence budgets as expected GNP increased, a significant variation between countries existed as to the timing of the increased defence allocations. The variations were so large that specific a priori generalizations could not be made as to how economic constraints control the budgetary process in these countries.
Contemporary Southeast Asia, March 1990.Refereed Journal Article
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