Author: Christos Kollias, Stelios Makrydakis
Publisher/Publication: Defense and Peace Economics
Volume/Issue: 8 (4)
DOI/ISBN: 10.1080/10430719708404886
Abstract: The authors in this paper examine the relationship between the military expenditures of Greece and Turkey, two NATO allies with a history of conflict and rivalry. They use time-series econometric techniques, such as cointegration and causality tests, to analyze the data from 1950 to 1995, and find evidence of a systematic armaments competition between the two countries, but only when a defense policy regime shift that occurred in 1985 is taken into account. They also discuss the implications of these findings for the security and stability of the region. Part of the econometric school of study of the post-1945 Greek-Turkish military expenditure and possible arms racing.