European NATO Fiscal Space before and under the Russo-Ukrainian War
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Tartalom: http://hdl.handle.net/20.500.12944/110214
Archívum: Közszolgálati Tudásportál
Gyűjtemény: Publikációk
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Cím:
European NATO Fiscal Space before and under the Russo-Ukrainian War
Létrehozó:
Kutasi, Gábor
Marton, Ádám
Waszkiewicz, Grzegorz
Tartalmi leírás:
The threat of war limits the fiscal space via direct fiscal items and indirect macroeconomic flows. The Russo-Ukrainian war has edged the fiscal challenge of the growing need for military spending in different regions of Europe. This study examines the impact of war-related threats on the fiscal capacity of European NATO countries. The research employs cluster analysis to evaluate the preparedness of these countries to reallocate fiscal resources in response to these pressures. Furthermore, the paper utilizes a dynamic panel Generalized Method of Moments (GMM) regression model to assess the influence of fiscal space determinants and geopolitical risk factors on military expenditure. The cluster variables are: military expenditures per capita in USD, public finance risk expressed as the credit default swap (CDS) spread, gross public debt representing the original sin, tax wedge as a mitigating items of reallocation of expenditures, the Gini coefficient as the origin of social spending needs, and finally distance from Russia as the pressure of military threat on the public finances. The GMM regression is extended with geopolitical risk indicators, development indicator and economic growth. The findings suggest that while a country’s level of development is a primary determinant of its per capita military spending in USD, the fiscal space exerts a particular influence on these expenditures, too.
Típus:
info:eu-repo/semantics/article
Formátum:
application/pdf
Azonosító:
nke:36933183
nke:10058509
nke:EKONOMICKY CASOPIS
nke:73
nke:9-10
nke:001688874900001
nke:105028908994
nke:EKON CAS
Létrehozó:
info:eu-repo/semantics/openAccess