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Arms export controls and emerging domestic producers

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Author Info

  • Paul Levine
  • Fotis Mouzakis
  • Ron Smith

Abstract

The possibility of domestic production raises a difficulty for arms export control measures, since embargoes, by raising the effective price of imports, increase the incentive for domestic production. We address this issue by developing a partial equilibrium model of the international arms market We compare three arms export regimes involving the exporters of high-technology arms, with a particular focus on the effect of emerging domestic production: laissez-faire trade, the uncoordinated regulation of exports and a producer cartel consisting of coordinated regulation. The main conclusion is that the possibility of domestic production significantly changes the nature of these stylized export regimes.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/10430710008404963
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Defence and Peace Economics.

Volume (Year): 11 (2000)
Issue (Month): 3 ()
Pages: 505-531

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Handle: RePEc:taf:defpea:v:11:y:2000:i:3:p:505-531

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Related research

Keywords: Arms trade; Emerging production; Regulation; Defence economics;

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Cited by:
  1. Maria del Carmen Garcia-Alonso & Paul Levine, 2005. "Strategic Procurement, Openness and Market Structure," Studies in Economics 0503, Department of Economics, University of Kent.
  2. Maria del Carmen Garcia-Alonso & Paul Levine, 2003. "Arms Export Controls, Subsidies and the WTO Exemption," Studies in Economics 0304, Department of Economics, University of Kent.

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