Nonlinear Dynamics of Militarization and Income Inequality Nexus in Post-Socialist Eastern Europe: A Panel Kink Regression Analysis (1990–2023)

O. Dimitraki,Kyriakos Emmanouilidis

Published 2025 in Peace Economics, Peace Science and Public Policy

ABSTRACT

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.

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