Abstract
This assignment highlights NATO’S two percent national GDP expenditure towards the collective military guideline established in 2006 and investigates the determinants for its incompliance. Specifically underscoring geopolitical determinants such as bordering Russia and historic influence from the Soviet Union. The variables and hypothesises were developed through existing literature and theoretical frameworks. This additionally led to the conclusion of implementing a time-series cross-sectional analysis, by splitting the regression into two groups one representing the years 1991-2022 and the other containing data from 2010-2022. The findings of this study are heterogeneous and do not discover a causal linkage between the geopolitical variables and military expenditure. My analysis does however highlight the significance of variables such as national GDP, GDP per capita and political stability, and slightly broadens the determinants for military expenditure within NATO member’s discourse.