Nonlinear dynamics of militarization and income inequality nexus in post-socialist Eastern Europe: a panel kink regression analysis (1990-2023)

Ourania Dimitraki
,
Kyriakos Emmanouilidis

Business & Management Research Institute (BMRI)

Research Output:

Contribution to journal

Article

Peer-review

Open access

Sustainable Development Goals

SDG 10 Reduced Inequalities
SDG 16 Peace, Justice and Strong Institutions

Abstract

This paper examines the relationship between militarization, and income inequality in Eastern Bloc European countries from 1990 to 2023 – a period marked by post-socialist transition, economic upheaval, and political instability. The region’s unique geopolitical position and complex socio-political structure have contributed to widening socioeconomic disparities and rising militarization. Using a panel kink regression (PKR) model with the Global Militarisation Index and GINI index, we identify a critical threshold beyond which militarisation’s effect on inequality reverses. Below this point, militarization modestly reduces inequality; above it, further increases worsen disparities. These findings underline the need for balanced policies that promote both security and social equity in the region.