Security and economic determinants of the demand for Czech military expenditure: ARDL approach

Abstract

This paper employs the Autoregressive Distributed Lag (ARDL) approach to cointegration to estimate a general model of Czech military expenditure over the period 2001-2015. The findings suggest that Czech military expenditures are determined by the level of military expenditure in previous year, by the risk for GDP growth, risk for inflation and risk of terrorism.