Arms Races in the Third World: Argentina and Brazil

Abstract

This article examines whether a significant part of Argentina's military budget over a 22-year span can be attributed to an arms race with Brazil. Multiple regression equations are estimated for the period 1961 and 1982 and several subperiods, taking into account Brazil's military spending, changes in political regimes in Argentina, and also the availability of economic resources allocated to the government. The results indicate that the rivalry existed until the mid-l970s. As a result of increased economic cooperation between the two countries since then, the arms race has gradually diminished, and other factors have become more important in determining defense spending levels in Argentina.