Summary: | 碩士 === 義守大學 === 管理學院管理碩士在職專班 === 99 === This study discusses the relationship between defense expenditure and economic development in EU Enlarged Countries. Our ten sample countries are including Czech, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia. We apply the panel data model under the data period of 1995-2009. The dependent variable is defense expenditure. The eight indendent variables are inflation rate, final consumption expenditure of general government, GDP, gross external debt, industrial production, export, import, and unemployment rate. There are five country-groups according the countries'' backgrounds. The results show that the defense expenditures in different country group are influenced by different economic factors. Among the eight economic factors, the GDP is the most significant.
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