عنوان مقاله [English]
Sensitivity and persistent conflicts in the Middle East region, has caused until a significant contribution from GDP in this countries to be allocated to the defense sector. Accordingly, the main purpose of this paper is to estimation the demand function of defense spending in 13 Middle East countries during the years of 1995-2014. For this purpose, designed a general model of defense spending for these countries and System Generalized Method of Moments (SGMM) in dynamic panel data form is used in order to estimation it. The model estimation results show that non-defense spending (as the opportunity cost of defense spending) and the trade balance have a negative effect on the defense burden in Middle East countries. Population, at significantly lower levels than other variables, has a positive effect on the defense burden in Middle East countries; that show defense is a public good. Variables of per capita income, the contribution of armed forces personnel of the total workforce and the lag of defense burden, as expected, have a positive impact on the defense burden in Middle East countries. The average burden defense in Middle East countries has a positive effect on the defense burden in Middle East countries that show an arms race between these countries. Also, the dummy variable of oil-exporting countries and democracy net variable, respectively, have been positive and negative effects on the defense burden in Middle East countries.