The demand for Canadian defence expenditures

Binyam Solomon

Defence and Peace Economics, 2005, vol. 16, issue 3, 171-189

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.

Keywords: ARDL models; Joint product model; NATO; Relative price effects; Demand models (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (9)

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DOI: 10.1080/10242690500123380

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