Convergence of Military Burdens in the MENA Region - Veli YILANCI, Hakan ERYUZLU and Sertac HOPOGLU

15/04/2020

ULUSLARARASI ILISKILER, ADVANCED ONLINE PUBLICATION, 2020

Veli YILANCI* Hakan ERYUZLU** and Sertac HOPOGLU***

ABSTRACT
Military burdens in hostile environments may be high, as countries choose to spend on the military for deterrence purposes. In this study, we test whether the convergence hypothesis is valid for military burdens of a panel of the Middle East and North Africa (MENA) countries. The results of the analysis suggest that there is unconditional β-convergence for the panel; however, individual convergence is valid for only Algeria, Egypt, Israel, Jordan, Morocco, and Saudi Arabia. We also test whether the military burdens of Israel and the United States influence the military burdens of the countries in the panel. The results suggest that only the military burdens of Kuwait, Morocco, Oman, Saudi Arabia, Tunisia, and Turkey converge to that of Israel, while individual convergence to the United States is only valid for Jordan, Kuwait, Morocco, Oman, and Tunisia.

Keywords: Non-Linear Panel Unit Root Test, Military Burden, Convergence, Middle East

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* Assoc Prof. Dr., Department of Econometrics, Sakarya University

** Assist. Prof. Dr., Department of Economics, Iskenderun Technical University

*** Assist. Prof. Dr., Department of International Management and Trade, Iskenderun Technical University