Bargaining power and U.S. military aid in the post-cold war era

• Autorzy: Wang Yu

Identyfikatory

DOI

10.35467/sdq/141351

• Języki publikacji: EN

Abstrakty

EN

This study examines the effect of bargaining power on the allocation of U.S. military assistance. Conceptualising U.S. military assistance as an aid-for-policy deal, it applies a two-tiered stochastic frontier model to a data sample of the post-Cold War era. It shows that the bargaining effect accounts for a huge variation in U.S. military aid distribution. The volume of U.S. military assistance in equilibrium is lower than the baseline volume by 4% at the mean and by 6% at the median. The donor U.S. extracts a slightly larger portion of the transaction surplus at these central points. However, the game of surplus division is not always about equally strong hagglers as it may first appear. In fact, the quartile values show substantial variance in bargaining performance and, hence, an outcome of surplus division across transactions. The bargaining effect is highly significant in the allocation of U.S. military assistance in the post-Cold War era. The donor U.S enjoys a bargaining advantage at the mean and median, but rich variations are noticeable.

Słowa kluczowe

EN

United States; bargaining; military aid; Post-Cold War; Stochastic Frontier

• Wydawca: Akademia Sztuki Wojennej
• Czasopismo: Security and Defence Quarterly
• Rocznik: 2021
• Tom: Vol. 35, No. 3
• Strony: 7--23
• Opis fizyczny: Bibliogr. 45 poz., tab.

Twórcy

autor

Wang Yu

• International Studies, Xi'an Jiaotong-Liverpool University, China

• https://orcid.org/0000-0003-4599-6131

Bibliografia

• 1. Apodaca, C. and Stohl, M. (1999) ‘United States human rights policy and foreign assistance’, International Studies Quarterly, 43(1), pp. 185–198. https://doi.org/ 10.1111/0020-8833.00116.
• 2. Balla, E. and Reinhardt, G.Y. (2008) ‘Giving and receiving foreign aid: Does conflict count?’, World Development, 36(12), pp. 2566–2585. https://doi.org/ 10.1016/j.worlddev.2008.03.008.
• 3. Bapat, N.A. (2011) ‘Transnational terrorism, US military aid, and the incentive to misrepresent’, Journal of Peace Research, 48(3), pp. 303–318. https://doi.org/ 10.1177/0022343310394472.
• 4. Boutton, A. (2019) ‘Of terrorism and revenue: Why foreign aid exacerbates terrorism in personalist regimes’, Conflict Management and Peace Science, 36(4), pp. 359–384. https://doi.org/10.1177/073889....
• 5. Boutton, A. and Carter, D.B. (2014) ‘Fair-weather allies? Terrorism and the allocation of US foreign aid’, Journal of Conflict Resolution, 58(7), pp. 1144–1173. https://doi.org/10.1177/002200....
• 6. Bueno de Mesquita, B. and Smith, A. (2007) ‘Foreign aid and policy concessions’, Journal of Conflict Resolution, 51(2), pp. 251–284. https://doi.org/10.1177/002200....
• 7. Bueno de Mesquita, B. and Smith, A. (2009) ‘A political economy of aid’, International Organization, 63(2), pp. 309–340. https://doi.org/10.1017/S00208....
• 8. Cingranelli, D.L. and Pasquarello, T.E. (1985) ‘Human rights practices and the distribution of U.S. foreign aid to Latin American countries’, American Journal of Political Science, 29(3), pp. 539–563. https://doi.org/10.2307/211114....
• 9. Conteh-Morgan, E. (1990) American Foreign Aid and Global Power Projection, Dartmouth Publishing Company, Aldershot.
• 10. Demirel-Pegg, T. and Moskowitz, J. (2009) ‘US aid allocation: The nexus of human rights, democracy, and development’, Journal of Peace Research, 46(2), pp. 181–198. https://doi.org/10.1177/002234....
• 11. Dreher, A., Nunnenkamp, P. and Thiele, R. (2008) ‘Does US aid buy UN general assembly votes? A disaggregated analysis’, Public Choice, 136(1), pp. 139–164. https://doi.org/10.1007/s11127....
• 12. Dunne, P. and Perlo-Freeman, S. (2003) ‘The demand for military spending in developing countries’, International Review of Applied Economics, 17(1), pp. 23–48. https://doi.org/10.1080/713673....
• 13. Fariss, C.J. (2010) ‘The strategic substitution of United States foreign aid’, Foreign Policy Analysis, 6(2), pp. 107–131. https://doi.org/10.1111/j.1743....
• 14. Fleck, R.K. and Kilby, C. (2010) ‘Changing aid regimes? U.S. foreign aid from the cold war to the war on terror’, Journal of Development Economics, 91(2), pp. 185–197. https://doi.org/10.1016/j.jdev....
• 15. Gaynor, M. and Polachek, S.W. (1994) ‘Measuring information in the market: An application to physician services’, Southern Economic Journal, 60(4), pp. 815–831. https://doi.org/10.2307/106042....
• 16. Gibler, D. (2008) ‘United States economic aid and repression: The opportunity cost argument’, The Journal of Politics, 70, pp. 513–526. https://doi.org/10.1017/S00223....
• 17. Gibler, D. and Miller, S.V. (2012) ‘Comparing the foreign aid policies of presidents Bush and Obama’, Social Science Quarterly, 93(5), pp. 1202–1217. https://doi.org/10.1111/j.1540....
• 18. Groot, W. and van den Brink, H.M. (2007) ‘Optimism, pessimism and the compensating income variation of cardiovascular disease: A two-tiered quality of life stochastic frontier model’, Social Science & Medicine, 65(7), pp. 1479–1489. https://doi.org/10.1016/j.socs....
• 19. Hook, S. (1995) National Interest and Foreign Aid, Lynne Rienner, Boulder, MA.
• 20. IMF. (2012) Direction of Trade Statistics. Washington, D.C.: International Monetary Fund.
• 21. Khilji, N.M. and Zampelli, E.M. (1994) ‘The fungibility of U.S. military and non-military assistance and the impacts on expenditures of major aid recipients’, Journal of Development Economics, 43(2), pp. 345–362. https://doi.org/10.1016/0304-3....
• 22. Kumbhakar, S. and Lovell, K. (2000) Stochastic Frontier Analysis, Cambridge University Press, Cambridge. https://doi.org/10.1007/s11123....
• 23. Kumbhakar, S.C. and Parmeter, C.F. (2009) ‘The effects of match uncertainty and bargaining on labor market outcomes: Evidence from firm and worker specific estimates’, Journal of Productivity Analysis, 31(1), pp. 1–14. doi: 10.1007/s11123-008-0117-3.
• 24. Lai, B. (2003) ‘Examining the goals of US foreign assistance in the post-cold war period, 1991–96’, Journal of Peace Research, 40(1), pp. 103–128. https://doi.org/10.1177/002234....
• 25. Marshall, M., Gurr, T.R. and Jaggers, K. (2012) Polity IV Project, Political Regime Characteristics and Transitions, 1800–2012. Available at: https://www.systemicpeace.org/... (Accessed: 29 June 2021).
• 26. Mayer, T. and Zignago, S. (2011) ‘Notes on CEPII’s distances measures’, CEPII Working Paper. Available at: http://www.cepii.fr/CEPII/en/p... (Accessed: 29 June 2021).
• 27. Meernik, J., Krueger, E.L. and Poe, S.C. (1998) ‘Testing models of U.S. foreign policy: Foreign aid during and after the cold war’, The Journal of Politics, 60(1), pp. 63–85. https://doi.org/10.2307/264800....
• 28. Murphy, A. and Strobl, E. (2008) ‘Employer and employee ignorance in developing countries: The case of Trinidad and Tobago’, Review of Development Economics, 12(2), pp. 339–353. https://doi.org/10.1111/j.1467....
• 29. Neumayer, E. (2003) ‘The determinants of aid allocation by regional multilateral development banks and United Nations agencies’, International Studies Quarterly, 47(1), pp. 101–122. https://doi.org/10.1111/1468-2....
• 30. Osborne, M. and Rubinstein, A. (1990) Bargaining and Markets, Academic Press, New York, NY.
• 31. Poe, S.C. (1991) ‘Human rights and the allocation of US military assistance’, Journal of Peace Research, 28(2), pp. 205–216. https://doi.org/10.1177/002234....
• 32. Poe, S.C. and Meernik, J. (1995) ‘US military aid in the 1980s: A global analysis’, Journal of Peace Research, 32(4), pp. 399–411. https://doi.org/10.1177/002234....
• 33. Polachek, S.W. and Yoon, B.J. (1987) ‘A two-tiered earnings frontier estimation of employer and employee information in the labor market’, The Review of Economics and Statistics, 69(2), pp. 296–302. https://doi.org/10.2307/192723....
• 34. Raffer, K. and Singer, H.W. (1996) The Foreign Aid Business, Edward Elgar, Cheltenham.
• 35. Rai, K.B. (1980) ‘Foreign aid and voting in the UN General Assembly, 1967–1976’, Journal of Peace Research, 17(3), pp. 269–277. https://doi.org/10.1177/002234....
• 36. Sandholtz, W. (2016) ‘United states military assistance and human rights’, Human Rights Quarterly, 38, p. 1070. https://doi.org/10.1353/hrq.20....
• 37. Strezhnev, A. and Voeten, E. (2013) United Nations General Assembly Voting Data. Available at: https://dataverse.harvard.edu/... (Accessed: 29 June 2021).
• 38. Tomini, S., Groot, W. and Pavlova, M. (2012) ‘Paying informally in the Albanian health care sector: A two-tiered stochastic frontier model’, The European Journal of Health Economics, 13(6), pp. 777–788. https://doi.org/10.1007/s10198....
• 39. USAID. (2012) Detailed Foreign Assistance Data. Washington, D.C.: U.S. Department of State.
• 40. U.S. Department of Defense. (2012) Active Duty Military Personal Strengths by Regional Area and by Country. Washington, D.C.: U.S. Department of State.
• 41. Wang, T.Y. (1999) ‘U.S. foreign aid and UN voting: An analysis of important issues’, International Studies Quarterly, 43(1), pp. 199–210. https://doi.org/10.1111/0020-8....
• 42. Wang, Y. (2016) ‘The effect of bargaining on US economic aid’, International Interactions, 42(3), pp. 479–502. https://doi.org/10.1080/030506....
• 43. Wang, Y. (2018) ‘Bargaining matters: An analysis of bilateral aid to developing countries’, Journal of International Relations and Development, 21(1), pp. 1–21. https://doi.org/10.1057/jird.2....
• 44. Wood, R.M. and Gibney, M. (2010) ‘The political terror scale (PTS): A re-introduction and a comparison to CIRI’, Human Rights Quarterly, 32(2), pp. 367–400. https://doi.org/10.1353/hrq.0.....
• 45. World Bank. (2012) World Development Indicators. Washington, D.C.: World Bank.

Uwagi

„Opracowanie rekordu ze środków MNiSW, umowa Nr 461252 w ramach programu "Społeczna odpowiedzialność nauki" - moduł: Popularyzacja nauki i promocja sportu (2021).”