1993 Volume 20 Issue 2 Pages 125-150
The Cold War has two kinds of effect in the modern world system. The first one is the excess defense spending of each individual country, specially that of both US and USSR, which probably weakened both big economies. The second one is to bring about serious regional conflicts in the world. This paper is focusing on the first effect of the Cold War. Therefore, the main aim of this paper is to describe the state of the Cold War on the main OECD countries' defense spending. It would be made clear how the disarmament affects these countries' military spending. The models used were action-reaction type, which depicts the determination of one country's defense spending in response to that of the enemy country. And it was confirmed that this type of models is adequate for describing the Cold War.