TY - JOUR PY - 2001// TI - Country survey military expenditure in Cyprus JO - Defence and peace economics A1 - Kollias, Christos SP - 589 EP - 607 VL - 12 IS - 6 N2 - Cyprus, a small island state, gained independence from British colonial rule in 1960. For more that half its history as an independent state Cyprus has been under occupation following the 1974 Turkish invasion. Despite the fact that it has faced war, invasion and occupation, Cyprus has allocated a comparatively small proportion of its national income to defence. The average defence burden—military expenditure as a share of GDP—during 1964-98 was around 2.5%. However, as a result of a substantial shift in defence policy during the past decade or so, the defence burden during the 1990s has increased, averaging about 4% of GDP as Cyprus decided to implement an extensive military modernization program aiming to present a more credible military deterrence vis-a-vis Turkey. Empirical estimations of a demand function for Cypriot military expenditure suggest that it is positively affected by alliance spillins and external military threat.

LA - SN - 1024-2694 UR - http://dx.doi.org/10.1080/10430710108405004 ID - ref1 ER -