| Summary: | 碩士 === 國防管理學院 === 國防財務資源研究所 === 94 === This paper aims to investigate the position of economy and democracy of countries facing armed conflict and the impact of armed conflict on defense finance burden. Using data from 169 countries in the period from 1980 to 2004, we reach the following conclusions. First, countries with higher level of democracy are less likely to have armed conflict while no significant relationship is detected between economic growth and the possibility of armed conflict. Second, degree of conflict is positively associated with defense burden, showing that countries encountering higher conflict tend to have more defense budget. Third, level of democracy is negatively associated with defense finance burden, indicating that countries having higher degree of liberty are less defense driven. Finally, some evidence supports the notion that economic growth leads to more defense input.
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