THE RELATIONSHIP BETWEEN US INFLUENCE AND MILITARY EXPENDITURE
This thesis examines the relationship between US influence as a product of interventionist foreign policy and military expenditure per capita in 165 countries during the Cold War era (1960-1990). More specifically, I explore the connection between intervention, regime type, and public finance. The method of analysis is fixed effects regression. Historical data on military expenditures are taken from the Correlates of War Project at the University of Michigan. Preliminary findings show that states under US influence tend to be economically healthier and spend less on defense. Estimation results reveal the relationship between the existence of a US-backed government and military spending per capita across the globe over a period of 30 years to be either or negatively associated at a small magnitude or nonexistent.
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