Effect of Oil Revenues on the Military Burden in Oil-Rich Countries of Middle East
Subject Areas : Bi-quarterly Journal of development economics and planning
1 - PhD of Public Sector Economics,Department of Economics and Administrative Sciences, Lorestan University, Khoramabad, Iran
Keywords: oil revenues, Generalized Method of Moments (GMM), Military Burden, Oil Countries of Middle East,
Abstract :
The main objective of this paper is to investigate the effect of oil revenues on the military expenditures in nine oil-rich countries of Middle East during the years 1995-2018. For this purpose, a general model of military expenditures designed for these countries and to estimate it the generalized method of moments (GMM) is used in the form of dynamic panel data. The results of the model estimation show that the oil revenues have a positive and significant effect on the military expenditures in the studied countries. So that with an increase of 1 percent in the share of oil revenues to GDP, the ratio of military spending to GDP (military time) increased in this country about 0.16 percent. On this basis, it can be said that the oil plays a significant role in providing military expenditure and security in the oil-rich countries of Middle East
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