| The dissertation constructs a model that explains how nations choose their strategies of arms and allies. Applying economic principles of exchange, it builds a model that captures how both international and domestic level variables affect strategies of arms and allies. Specifically, it demonstrates that three variables (costs, resources, and preferences) determine a nation's strategy of arms and allies through their impact on three market forces (international demand, domestic demand and economies of scale in the production of military capabilities). It demonstrates that increases in resources and preferences for military capabilities increase states' demands for military capabilities and encourages them to arm. It also shows that high costs or economies of scale in military production encourage states to form substitution and complementary alliances. |
