Study on the Evolution of Defense Expenses in Nato Member States for the Period 2010–2020. “Free Rider” behavior among Allies

Abstract

Abstract This paper proposes a longitudinal study on the analysis of defense spending of NATO member states in the years 2010-2020. It also aims to identify the emergence of a possible “free-rider” behavior among alliance members. This behavior occurs when some members may be tempted to allocate a low level of defense spending. Defense spending is an important component of each state’s budget, which ensures a vital function of states, namely the national defense function. When the defense is carried out in military-type alliances, and the number of members is large, there is an increased possibility of observing a “free-rider” type behavior between the members of the alliances. To observe this behavior, we tried to identify the best evaluation indicator, which according to the literature could be “the share of defense spending in GDP.” The paper is divided into five parts as follows: the first point considers the introductory part of the paper and the setting of objectives; the second chapter describes the study database, as well as the research methodology and methods used in the study to obtain the results; in the third chapter is analyzed the literature with impact on the studied subject; in the fourth chapter the case study is carried out; and in the last chapter mentioned the conclusions of the study.