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Globalization fuels increased military spending, which in turn may lead to future conflicts, potentially hindering further globalization. This study examines the link between militarism and globalization for major global spenders.

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Area of Science:

  • Economics
  • International Relations
  • Political Science

Background:

  • Previous research explored military expenditure and economic growth but overlooked globalization's role.
  • The interplay between national security spending and global interconnectedness requires examination.

Purpose of the Study:

  • To investigate the causal relationship between militarism and globalization.
  • To analyze this relationship for the top 15 military spenders globally between 1990 and 2012.

Main Methods:

  • Employed the bootstrap panel Granger causality approach.
  • Analyzed data from the top 15 military expenditure spenders over a 23-year period (1990-2012).

Main Results:

  • A significant causal relationship was found between military expenditure and overall globalization for most countries studied.
  • Increased globalization correlated with substantial rises in militarization over the analyzed period.

Conclusions:

  • Globalization appears to drive increased military expenditure.
  • Anticipation of future military conflicts, spurred by higher spending, may deter globalization, suggesting a complex, bidirectional relationship.