Register  |  Login  |  Inquiries  |  Sitemap
Advanced Search
Journal of Economic Integration 2014 June;29(2) :329-342.
DOI: https://doi.org/10.11130/jei.2014.29.2.329
Military Alliances and Reality of Regional Integration: Japan, South Korea, the US vs. China, North Korea
Young-Wan Goo and 
Seong-Hoon Lee 
Chungbuk National University, Cheongju, South Korea
Cheongju University, Cheongju, South Korea
Corresponding Author: Young-Wan Goo ,Tel: +82 432612217, Email: ywgoo@cbnu.ac.kr
Copyright ©2014 Journal of Economic Integration
ABSTRACT
East Asian military security is of overarching importance in the economic integration and prosperity in this region. This study analyzes how South Korea and Japan consider the U.S. as a military ally in the context of the China–North Korea alliance by using the iterative Seemingly Unrelated Regression(SUR) method in estimating defense goods demand functions. The findings are that Japan considered the U.S. to be a closer ally than the U.S. did during 2000~2005 and South Korea may regard the U.S. as a closer ally than vice versa. The U.S. regards Japan as a closer ally than Korea. South Korea’s demand for defense goods has not been increased by the threat from the China–North Korea alliance but American and Japanese demand has recently been increased by the threat, implying that South Korea has not regarded the China–North Korea alliance as a significant threat whereas that Japan and the U.S. have recognized the military alliance as a serious one.

JEL Classification
H410:
H560:
O530:
Keywords: Military Alliance | Defense Goods | Threat Elasticity | Spill-In Elasticity (SIE) | Public Good
 
REFERENCE
1. Abdollahian, Mark, and Kyungkook Kang (2008), “In Search of Structure: The Nonlinear Dynamics of Power Transitions International Interactions”, International Interactions, 34: 333-357.
2. Alesina, Alberto, and Enrico Spolaore (2006), “Conflict, Defense Spending, and the Number of Nations”, European, Economic Review, 50: 91-120.
3. Conybeare, John A. C., and Todd Sandler (1990), “The Triple Entente and The Alliance 1880~1914: A Collective Goods Approach“, American Political Science Review, 84: 197-206.
4. Dunne, Paul J., Ron Smith, and Dirk Willenbockel (2005), “Models of Military Expenditure and Growth: A Critical Review”, Defence and Peace Economics, 16: 449- 461.
5. Garfinkel, Michelle R. (2004), “Stable Alliance Formation in Distributional Conflict”, European Journal of Political Economy, 20: 829-852.
6. Gonzales, Rodolfo A., and Stephen L. Mehay (1991), “Burden Sharing in the NATO Alliance: An Empirical Test of Alternative Views”, Public Choice, 68: 107-116.
7. Goo, Young-Wan, and Seung-Nyeon Kim (2009), “A Study on the Military Alliance of South Korea-United States with the Existence of Threat from North Korea: A Public Good Demand Approach”, Empirical Economics, 36: 597-610.
8. Goo, Young-Wan, and Seung-Nyeon Kim (2012), “Time-Varying Characteristics of South Korea-United States and Japan-United States Military Alliances under Chinese Threat”, Defense and Peace Economics, 23: 95-106.
9. Heritage Foundation (2009), “Global U.S. Troop Deployment Dataset”, http://www. heritage.org/Research/NationalSecurity/troopsdb.cfm.
10. Hilton, Brian, and Anh Vu (1991), “The McGuire Model and The Economics of The NATO Alliance”, Defense Economics, 2: 105-121.
11. “Korea Ministry of National Defense”, Defense White Paper.
12. McGuire, Martin C. (1982), “US Assistance, Israeli Allocation, and the Arms Race in the Middle East”, Journal of Conflict Resolution, 26: 199-235.
13. McGuire, Martin C. (1990), “Mixed Public-Private Benefit and Public Goods Supply, with an Application to the NATO Alliance”, Defense Economics, 1: 17-35.
14. Murdoch, James C., and Todd Sandler (1982), “A Theoretical and Empirical Analysis of NATO”, Journal of Conflict Resolution, 26: 237-263.
15. Murdoch, James C., and Todd Sandler (1984), “Complimentarily, Free Riding, and the Military Expenditure of NATO Allies”, Journal of Public Economics, 25: 83-101.
16. Murdoch, James C., and Todd Sandler (1985), “Australian Demand for Military Expenditure: 1961-1979”, Australian Economic Papers, 44: 142-153.
17. Okamura, Minoru (1991), “Estimating the Impact of the Soviet Union’s Threat on the United States-Japan Alliance: A Demand System Approach”, Review of Economics and Statistics, 73: 200-207.
18. Olson, Mancur Jr., and Richard Zeckhauser (1966), “An Economic Theory of Alliances”, Review of economics and Statistics, 48: 266-279.
19. Oneal John R. (1990), “Testing the Theory of Collective Action: NATO Defense Burdens, 1950-1984”, Journal of Conflict Resolution, 34: 426-448.
20. Sandler, Todd (1977), “Impurity of Defense: An Application to the Economics of Alliances”, Kyklos, 30: 443-460.
21. Sandler, Todd, and John F. Forbes (1980), “Burden Sharing, Strategy, and the Design of NATO”, Economic Inquiry, 18: 425-444.
22. Sandler, Todd, and James C. Murdoch (1990), “Nash-Cournot or Lindahl Behavior?: An Empirical Test for the NATO Allies”, Quarterly Journal of Economics, 105: 875-894.
23. Shefi, Yoad, and Asher Tishler (2005), “The Effects of the World Defense Industry and US Military Aid to ISRAEL on the ISRAEL Defense Industry: A Differentiated Products Model”, Defence and Peace Economics, 16: 427-448.
24. Smith, Ronald P. (1989), “Models of Military Expenditure”, Journal of Applied Economics, 4: 345-359.
TOOLS
PDF Links  PDF Links
Full text via DOI  Full text via DOI
Download Citation  Download Citation
Supplement  Supplement
  E-Mail
Share:      
METRICS
0
Crossref
0
Scopus
1,677
View
21
Download
Editorial Office
Center for Economic Integration, Sejong Institution, Sejong University, 209, Neungdong-Ro, Gwangjin-Gu,
Seoul, 05006, Korea
TEL : +82-2-3408-3338    FAX : +82-2-3408-3338   E-mail : jei@sejong.ac.kr
Browse Articles |  Current Issue |  For Authors and Reviewers |  About
Copyright© by Center for Economic Integration. All right reserved.