Do Natural Resources of Rentier States Promote Military Expenditures? Evidence from GCC Countries

Abstract

This study aims to explore the effect of natural resources of rentier states on military expenditure using the panel data from GCC countries. The principle findings suggest that types of natural resources matter and that the rent from oil only appeared to fuel the military expenditure of GCC, other natural resources such as gas and minerals are not. Further, the study found that Gulf War I and II as well as Arab Spring is statistically insignificant in explaining the military expenditure of GCC.