Citation

Solomon B. Def. Peace Econ. 2005; 16(3): 171-189.

Copyright

(Copyright © 2005, Informa - Taylor and Francis Group)

DOI

10.1080/10242690500123380

PMID

unavailable

Abstract

This paper presents an analysis of the determinants of the demand for Canadian military expenditures through the estimation of a demand for defence expenditures model for the time period 1952-2001 using, among others, the auto-regressive distributed lag approach to cointegration (ARDL) to estimate and test cointegration and long run relationships. The findings suggest that Canadian defence spending is determined by NATO's (Europe) defence spending, that of the US to a lesser extent, relative price effects and opportunity cost considerations. In light of the fact that Canada's national, foreign and defence interests are tied to international organizations and bilateral arrangements, the results are not surprising.