| Summary: | 碩士 === 國防管理學院 === 國防財務資源研究所 === 95 === The terrorists of 911 attack shocked the world. Governments all around the world are deeply aware of the importance of the national security, which include military security, defense security and homeland security. The army is not only the shield of keeping national and defense security, but also the main support of homeland security. Thus, defense budget is the basic capital resource for the army to keep the development of national security, and primary needs for a country to survive. Accordingly, we apply Data Envelopment Analysis (DEA) to measure the national defense efficiency and budget efficiency for countries around the world from year 1999 to year 2003. Empirically, we adopt a multivariate nested design model to investigate whether there exists significant differences in the defense competitiveness, defense efficiency and budget efficiency before and after the 911 terrorist attack. Moreover, this paper explores the influences of geographic characteristic, militarization and economics levels on these responses.
The empirical results show that: 1. After the 911 terrorist attacks, both the efficiencies of defense and budget are higher, but not statistically significant. 2. There exist statistically significant differences in the defense competitiveness between sea-nations and island-nations, whereas we obtain a different result in the case of the budget efficiency. 3. The differences between the sea-nations’ or island-nations’ defense and budget efficiencies among combinations of militarization and economics before and after 911 attack are statistical significant. 4. The interaction effects of militarization and economics on the budget efficiency before and after 911 attack is statistically significant.
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