Energy (In)Security and the Arms Trade

CSEF working paper no. 452

37 Pages Posted: 21 Oct 2016

See all articles by Vincenzo Bove

Vincenzo Bove

University of Warwick - Department of Politics and International Studies

Claudio Deiana

University of Cagliari - Department of Economics; University of Essex - Department of Economics; Universita di Cagliari - Centre for North South Economic Research (CRENOS)

Roberto Nisticò

Center for Studies in Economics and Finance; Department of Economics and Statistics (DiSES), University of Naples Federico II; IZA Institute of Labor Economics

Date Written: September 2016

Abstract

We provide novel empirical models of the arms trade and focus on the role of energy dependence, in particular of oil, in explaining the trade of weapons between countries. Dramatic geopolitical events such as wars can cause significant disruptions in the supply of oil and increase oil prices. Oil-dependent economies have therefore incentives to provide security by selling or giving away arms to oil-rich countries and reduce the risk of instability. We find strong empirical support for this claim using data on international transfers of major weapons and information on global and local oil dependence, oil reserves and oil discoveries.

Keywords: Arms Trade, Oil, Security

JEL Classification: F10, F50, H56, Q34

Suggested Citation

Bove, Vincenzo and Deiana, Claudio and Nisticò, Roberto, Energy (In)Security and the Arms Trade (September 2016). CSEF working paper no. 452, Available at SSRN: https://ssrn.com/abstract=2856426 or http://dx.doi.org/10.2139/ssrn.2856426

Vincenzo Bove

University of Warwick - Department of Politics and International Studies ( email )

Coventry CV4 7AL
United Kingdom

Claudio Deiana

University of Cagliari - Department of Economics ( email )

Cagliari, 09124
Italy

University of Essex - Department of Economics ( email )

Wivenhoe Park
Colchester, CO4 3SQ
United Kingdom

Universita di Cagliari - Centre for North South Economic Research (CRENOS) ( email )

V. S. Ignazio 78
Cagliari, 09124
ITALY

Roberto Nisticò (Contact Author)

Center for Studies in Economics and Finance ( email )

Via Cintia
Complesso Monte S. Angelo
Naples, Naples 80126
Italy

HOME PAGE: http://www.csef.it/

Department of Economics and Statistics (DiSES), University of Naples Federico II ( email )

Via Cintia 26
Naples, Napoli
Italy

HOME PAGE: http://www.dises.unina.it/

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

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