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The impact of arms production on the South African manufacturing industry

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Author Info

  • Alvin Birdi
  • Paul Dunne
  • David Saal

Abstract

The 1977 UN arms embargo was one of the main factors which led South Africa to establish a largely self sufficient import-substituting arms industry capable of meeting the apartheid state's demand for sophisticated weaponry. While macroeconomic studies suggest that high military spending had a damaging effect on economic growth, no studies have investigated the disaggregated impact of military expenditure on industrial development. This paper applies panel data methods to the Industrial Development Corporation's Sectoral Database in order to analyse the level effects of military spending.

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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): 4 ()
Pages: 597-613

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Handle: RePEc:taf:defpea:v:11:y:2000:i:4:p:597-613

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Related research

Keywords: Arms production; Government spending; Manufacturing; Panel data;

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Cited by:
  1. Alexamder, W.R. & Hansen, P. Author-Emai, 2004. "A Criritique of the Multi-Sector Model of the Effects of Military Spending on Economic Growth," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 4(2).
  2. Aying Liu & David Saal, 2001. "Structural Change in Apartheid-era South Africa: 1975-93," Economic Systems Research, Taylor & Francis Journals, vol. 13(3), pages 235-257.

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