Ir al contenido

Documat

Effiency evaluation of NATO member nations from a defence economics perspective

  • Domínguez Sánchez, Mónica [2] ; Aparicio Baeza, Juan [3] ; Fonfría Mesa, Antonio [1]
    1. [1] Universidad Complutense de Madrid

      Universidad Complutense de Madrid

      Madrid, España

    2. [2] Nacional Distance Education University
    3. [3] Miguel Hernandez University
    Mostrar afiliaciones +
  • Localización: BEIO, Boletín de Estadística e Investigación Operativa, ISSN 1889-3805, Vol. 37, Nº. 3, 2021, págs. 183-207
  • Idioma: inglés
  • Enlaces
  • Resumen

    • The main objective of this article is the evaluation of the efficiency and its evolution over time of 27member countries of the North Atlantic Treaty Organization (NATO). We analyse the relationshipbetween defense expenditure and the spending on military personnel as well as how security isperceived by citizens. To this end, a data panel for the years 2010 to 2017 has been used, consistingof various inputs at the macroeconomic level and one output, associated with the performance ofthe defense sector of NATO countries. For this, a production function has been estimated basedon Data Envelopment Analysis methodology. According to the results obtained, the countries showhigh efficiency rates, around 80% with an increasing trend of 2.5% in the period studied. Thus,the estimated average technical efficiency was approximately 85.3%, that is, the NATO countriesanalyzed could increase their citizen security index by around 14.7 % without modifying the resourcesused in their defense.

  • Referencias bibliográficas
    • Asseery, AA. (1996). Evidence from Time Series on Militarising the Economy: The Case of Iraq.Applied Economics. 28 (10) 1257-1261.
    • Badin, L., Daraio, C., Simar, L. (2014). Explaining inefficiency in nonparametric production models:the state of the art.Annals of Operations...
    • Banker, R. D. and Charnes, A., and Cooper, W. W. (1984). Some models for estimating technicaland scale inefficiencies in data envelopment...
    • Banker, R.D. and Morey, R.C. (1986). Efficiency analysis for exogenously fixed inputs and outputs.Operations Research, 34(4), 513-521.
    • Briec, W. (1998).H¨older Distance Functions and Measurement of Technical Efficiency. Journal ofProductivity Analysis, 11: 111-131.
    • Briec, W. and Lemaire, B. (1999). Technical efficiency and distance to a reverse convex set.EuropeanJournal of Operational Research, 114:...
    • Charnes, A., Cooper, W. W., and Rhodes, E. (1978). Measuring the efficiency of decision makingunits.European Journal of Operational Research,...
    • Chen and Sherman (2004). The benefits of non-radial vs. radial super-efficiency DEA: an applicationto burden-sharing amongst NATO member nations.Socio-Economic...
    • Cherchye, L., Moesen, W., and Puyenbroeck, T. (2004). Legitimately diverse, yet comparable: onsynthesizing social inclusion performance in...
    • Chletsos, M. and C. Kollias. 1995. ‘The demand for Turkish military expenditure 1960–1992.’CyprusJournal of Economics8 (1): 64–74.
    • Cooper. W.W.. Seiford. L.M. and Tone. K. (2000). Data envelopment analysis: a comprehensivetext with models. applications. references and...
    • Davis, D.M. (2011). Designing a viable prediction market to forecast defense acquisition cost andschedule outcomes.Defence and Peace Economics....
    • Driver, D. (2016) Burden sharing and the future of NATO: wandering between two worlds,Defenseand Security Analysis, 32:1, 4-18
    • Duch-Brown, N., Fonfría, A. and Trujillo-Baute, E. (2014). Market structure and technical efficiencyof Spanish defense contractors.Defence...
    • Dunne, J P and Nikolaidou, E. (2005) Military spending and economic growth in Greece, Portugaland Spain.Frontiers in Finance and Economics2...
    • Dunne, J.P. and Tian, N. (2015) Military Expenditure, Economic Growth and Heterogeneity,Defenceand Peace Economics, 26:1, 15-31.
    • Dunne, P. and Vougas, D. (1999). Military Spending and Economic Growth in South Africa: ACausal Analysis.Journal of Conflict Resolution, 43(4),...
    • Dunne, P., Nikolaidou, E. and Smith, R. (2002). Military Spending, investment and. EconomicGrowth in Small Industrialising Economies.The South...
    • Dunne, P., Smith, R.P. and Willenbockle, D. (2018). Models of Military Expenditure and Growth: ACritical Review.Defence and Peace Economics,...
    • Ebrahimnejad, A. and Tavana, M. (2014). An interactive MOLP method for identifying target unitsin output-oriented DEA models: The NATO enlargement...
    • Farrell, M. J. (1957). The measurement of productive efficiency.Journal of the Royal StatisticalSociety: Series A (General), 120(3), 253-281.
    • Ghazalian, P.L and Hammoud, M. (2020). The Peace Level of Nations: An Empirical Investigationinto the Determining Factors.Defence and Peace...
    • Global Peace Index (2019). Measuring Peace in a complex world. Institute for Economics and Peace.Sydney, June 2019. Available from:http://visionofhumanity.org/indexes/global-peace-index.
    • Grautoff, M. and Miranda, F. C. (2009). Analysis of military spending from the perspective of thedefense economy: The Colombian case 1950-2006.Ecos...
    • Hanson, T. (2016). Efficiency and productivity in the operational units of the armed forces: ANorwegian example.International Journal of Production...
    • Hartley, K. (2011). Exit defense measures: an economic perspective. Contract report: DRDC CORACR 2011-178.Center for Research and Operational...
    • Hildebrandt, G. G. (2007). Budget estimating relationships for depot-level repairables in the AirForce flying hour program (Vol. 355).Rand...
    • Hunter, E and Pernik, P. (2015). The challenges of hybrid warfare.Analysis. International Centerfor Defence and Security. Estonia.
    • Kollias, C., Manolas, G., and Paleologou, S. M. (2004). Defence expenditure and economic growth inthe European Union: a causality analysis.Journal...
    • Lebovic, J.H. and Ishaq, A. (1987) Military burden, security needs, and economic growth in theMiddle East’,Journal of Conflict Resolution,...
    • Lee, S.C., Lee, C. T., and Wu, S.F. (2016) Military spending and growth: a small open economystochastic growth model,Defence and Peace Economics,...
    • Leibenstein (1966). Allocative Efficiency vs. X- Efficiency. Harvey Leibenstein.The AmericanEconomic Review, Volume 56, Issue 3, 392-415.
    • Lovell, C. K., Pastor, J. T., and Turner, J. A. (1995). Measuring macroeconomic performance in theOECD: A comparison of European and non-European...
    • Lovell, C. A. K., & Pastor, J. T. (1999). Radial DEA models without inputs or without outputs.European Journal of Operational Research118:...
    • Macnair, E, J. Murdoch, C., and T. Sandler (1995), Growth and defense: pooled estimates for the NATO alliance, 1951-1988.Southern Economic...
    • Martí, Sempere, C., and Fonfria, Mesa, A. (2020). An Analysis of the Defence Industrial MarketBased on Agents,Defence and Peace Economics,...
    • Martínez González, A., and Rueda López, N. (2005). Productividad del sector de defensa y deseguridad.Econom´ıa Industrial, ISSN 0422-2784,...
    • Martínez González, A., and Rueda López, N. (2013). A productivity and efficiency analysis of thesecurity and defence technological and industrial...
    • Mintz, A., and Huang, C. (1990). Defense expenditures, economic growth, and peace dividend.American Political Science Review, 84(4), 1283–1293.
    • Nayar, P., Ozcan, Y. A., Yu, F., and Nguyen, A. T. (2013). Benchmarking urban acute care hospitals:efficiency and quality perspectives.Health...
    • Neira, M.A.A. and González A.M., (2007). Los determinantes pol´ıticos y econ´omicos del gasto endefensa un estudio a trav´es de t´ecnicas...
    • North Atlantic Treaty Organization (NATO). 2010 to 2017 Financial and economic data relatedto NATO defense. Brussels, Belgium: NATO, Press...
    • Prieto, A. M., and Zofio, J. L. (2001). Evaluating effectiveness in public provision of infrastructureand equipment: the case of Spanish municipalities.Journal...
    • Scalco, P. R., Amorim, A. L., and Gomes, A. P. (2012). Eficiencia t´ecnica de la polic´ıa militar enMinas Gerais.Nova Economia, 22(1), 165-190.
    • Scheetz, T. (1991). The macroeconomic impact of defence expenditures: some econometric evidencefor Argentina, Chile, Paraguay and Peru.Defence...
    • Shephard, R.W., (1953) Cost and Production Functions, PrincetonUniversity Press, Princeton, NJ.
    • Smith, R. (1980) Military expenditure and investment in OECD countries. 1954–1973.Journal of Comparative Economics, 4 (1)19-32.
    • Spendolini, M. J. (1994). Benchmarking.Bogot´a: Norma S.A. p. 11.
    • Ward, M.D. and Davis, D. (1992). Sizing up the Peace Dividend: Economic Growth and MilitarySpending in the United States, 1948-1996.American...
Fundación Dialnet

Mi Documat

Opciones de artículo

Opciones de compartir

Opciones de entorno