This study investigates the long-term relationship between military expenditures and public indebtedness in Finland and Sweden over the period 2000–2024, in the context of rising defence spending linked to the Russian–Ukrainian conflict and NATO’s 2% GDP target. The main objective is to examine whether a positive relationship exists between military expenditures and national debt. Estimating an autoregressive distributed lag (ARDL) framework with macroeconomic control variables, the results reveal a statistically significant positive long-run effect for Sweden, while Finland exhibits a negative relationship. The findings suggest that the fiscal impact of defence spending is country-specific.
This paper analyses the determinants of recruitment intensity in the Armed Forces of the Czech Republic. Using annual data from 2005 to 2024, a multivariate regression framework is applied to examine the effects of labour market, demographic, and fiscal factors. The results indicate that the unemployment rate is negatively associated with recruitment intensity, while demographic variables exhibit strong and consistent effects. By contrast, compensation and fiscal variables show weaker and less robust relationships. These findings suggest that realised recruitment outcomes reflect not only labour supply conditions but also institutional constraints and the structure of the population meeting military recruitment requirements.
This contribution deals with modelling of military expenditure and its potential security and economic determinants by an Autoregressive Distributed Lag (ARDL) model. This approach is applied to several NATO member countries over the period 2001–2016, namely to Visegrad group countries and Baltic states. Time series of military expenditure (database SIPRI), the risk of inflation, GDP growth, terrorism, foreign pressure, cross-border conflict and ethnic tension (database of Political Risk Service Group) are used in analysis.