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Economic Analysis of Trade, Investment, Growth, and Security--An Application to Poland
AuthorMorris, Grace L.
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Each country that works in conjunction with the U.S. military incurs the risk of threats of attack, disruption in their foreign relations, and a loss of sovereignty. Compensating for these risks, participating countries may receive economic benefits in addition to increased security. Using regression analysis, I find that increased U.S. military involvement in a foreign country is statistically correlated with higher trade, investment, and economic growth. These correlations can give the U.S. leverage in negotiations. However, the case study on Poland’s decision-process on whether to host the U.S. anti-missile system illustrates that the degree of the foreign country’s economic development determines the amount of leverage the U.S. has in negotiations, although economic benefits are not the sole determinants of whether countries choose to become involved with the U.S. military.