Dynamic change of international arms trade network structure and its influence mechanism

Abstract

Purpose

The purpose of this study is to analyze the dynamic changes of the arms trade network not only from the network structure but also the influence mechanism from the aspects of the economy, politics, security, strategy and transaction costs.

Design/methodology/approach

The study employs the Temporal Exponential Random Graph Model and the Separable Temporal Exponential Random Graph Model to analyze the endogenous network structure effect, the attribute effect and the exogenous network effect of 47 major arms trading countries from 2015 to 2020.

Findings

The results show that the international arms trade market is unevenly distributed, and there are great differences in military technology. There is a fixed hierarchical structure in the arms trade, but the rise of emerging countries is expected to break this situation. In international arms trade relations, economic forces dominate, followed by political, security and strategic factors.

Practical implications

Economic and political factors play an important role in the arms trade. Therefore, countries should strive to improve their economic strength and military technology. Also, countries should increase political mutual trust and gain a foothold in the industrial chain of arms production to enhance their military power.

Originality/value

The contribution of this paper is to analyze the special trade area of arms trade from a dynamic network perspective by incorporating economic, political, security, strategic and transaction cost factors together into the TERGM and STERGM models.

Citation

Wang, X.-Y., Chen, B. and Song, Y. (2023), "Dynamic change of international arms trade network structure and its influence mechanism", International Journal of Emerging Markets, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJOEM-07-2022-1058