Country Survey: Canadian Military Expenditure and Defence Policy

Karl Skogstad and Ryan Compton

Defence and Peace Economics, 2022, vol. 33, issue 5, 616-636

Abstract: This paper provides an overview of the Canadian defence sector following the Cold War. A review of Canadian defence policy in this period indicates that, though the mission of the Canadian military did not change, fiscal realities forced severe restrictions on the size and capabilities of the organization. Comparisons between Canada and other G7 NATO nations indicate that throughout this period, Canada has consistently devoted fewer resources to the military than its allies. A review of Canada’s defence industrial base and defence policy indicates that this limited funding has led to a small and uncompetitive defence sector in the Canadian economy. Lastly, a regression analysis of Canada’s defence spending is undertaken which reveals that domestic economic variables are the primary determinant of Canadian defence spending during this period.

Date: 2022
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DOI: 10.1080/10242694.2021.1963525

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