An Empirical Study on the Determinants of Optimal Size of the Korean Military Force Using Panel Data Analysis

This study aims to analyze the determinants that affect the appropriate size of the Korean military, estimating the appropriate size of the Korean military based on the theoretical model. Compared to previous empirical studies on appropriate troop size using cross-sectional data, this study attempts to analyze parameter estimates of the empirical analysis model more accurately and efficiently by using panel data, which is considering individual characteristic effects and time characteristic effects for empirical analysis. Main research results are as follows. First, defense spending, population, and weapon system's level significantly affect the proper size of the Korean military at the 5% level of significance, while threats and military service system are statistically significant at the 10% level of significance. Secondly, based on the empirical model, the appropriate size of the Korean military was estimated as 0.329 million. The estimated appropriate troop size may suggest the need for continuous military innovation into a technology and capital-intensive military structure, for the Korean military to break away from the volume-oriented military structure in the future.