Most of the studies show a clear relation between the increase of Oil revenues and the rapid increases in the military expenditure and arms imports (Perlo-Freeman, et al, 2011, Ali 2013). According to the Stockholm International Peace Research Institute (SIPRI, 2010), rising prices and new Oil and Gas exploitation have given governments windfall revenues, some of which have found their way into military spending. Using global data from 1988 to 2013 for 119 countries, this research aim to study: To what extent does the rent from natural resources affect the military spending? Is the countries level of development vis-à-vis military spending? This study will add to the literature available on the consequences of Natural resources on military spending and support the resources curse hypotheses that building up the military-industrial complex intertwined with the natural resources revenues windfall. In addition, it has been shown that natural resources have got negative impact on defense spending such as Oil and natural gas. Moreover, a variable such as Openness has got a crucial significant impact on military spending, while the rent from minerals and coal are ambiguous and has no certain impact on military spending. Keywords: Military Spending; Natural Resources; Openness; Global Data


Public Policy & Administration Department

Degree Name

MA in Public Administration

Graduation Date


Submission Date

May 2014

First Advisor

Ali, Hamid

Committee Member 1

Amin, Khaled

Committee Member 2

Hodgkins, Allison


59 p.

Document Type

Master's Thesis

Library of Congress Subject Heading 1

tural resources.

Library of Congress Subject Heading 2

Armed Forces -- Appropriations and expenditures.


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Institutional Review Board (IRB) Approval

Not necessary for this item


I would like to thank God for everything I have got in order to develop my academic career and bestowed me during my masters. The success of this thesis required a lot of work, ambition, guidance, and assistance from my beloved people who gave me the strength and wellness along the period of completing my thesis. And I’m totally blessed by having them at my life. Firstly, I would like to express my sincere gratitude and deepest appreciation to my supervisor Prof. Hamid Ali for his unconditiol support throughout my master’s study not only in supervising my thesis. I would like to thank my thesis committee: Dr. Allison Hodgkins and Dr. Khaled Amin for their guidance and support to make my thesis paper. I dedicate this thesis to my family. I feel a great gratitude to my stunning Dad (Osama Hamza) the person who brought me up and has given me the faith, support and the opportunity to continue my academic career and to be who I am today. In addition, I would like to express my deepest appreciation to my lovely mom and brothers who represent the source of inspiration at my life. Filly, I would like to thank my dear friends and colleagues who have supported me and have given me valuable insights.