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Small Countries And The Consolidation Of The European Defence Industry: Portugal As A Case Study

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Author Info
CARLOS PESTANA BARROS

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Abstract

In this paper, we analyse the dilemma confronted by a small country in relation to the consolidation taking place in the European defence industry. Assuming that Portugal must maintain its armed forces, and must retain a minor defence industry, this industry must be competitive in small niches. Competitiveness must be based on, amongst other elements, technical efficiency and technological change. We investigate this issue, first characterizing the threats faced by the Portuguese defence industry, then investigating its present efficiency and finally, we discuss its role in the consolidation of the European Industry. We conclude that the Portuguese defence industry has no alternative but to opt for innovation and European partnership, which are complementary policies, but which require the active involvement of the stakeholder ( i.e. the Government) in effecting these fundamental shifts in direction and emphasis. If this strategy does not succeed, the defence policy should be based on offsets.

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

Volume (Year): 13 (2002)
Issue (Month): 4 (January)
Pages: 311-319
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Handle: RePEc:taf:defpea:v:13:y:2002:i:4:p:311-319

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Related research
Keywords: Small Country; Defence Industry; Efficiency; Malmquist Index; European Consolidation;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Dunne, J. Paul, 1995. "The defense industrial base," Handbook of Defense Economics, in: Keith Hartley & Todd Sandler (ed.), Handbook of Defense Economics, edition 1, volume 1, chapter 14, pages 399-430 Elsevier. [Downloadable!] (restricted)
  2. Taskin, Fatma & Zaim, Osman, 1997. "Catching-up and innovation in high- and low-income countries," Economics Letters, Elsevier, vol. 54(1), pages 93-100, January. [Downloadable!] (restricted)
  3. Diewert, Erwin, 2007. "Index Numbers," UBC Departmental Archives diewert-07-01-03-08-17-23, UBC Department of Economics, revised 31 Jan 2007. [Downloadable!]
  4. Fare, Rolf & Grosskopf, Shawna & Yaisawarng, Suthathip & Li, Sung Ko & Wang, Zhaoping, 1990. "Productivity growth in Illinois electric utilities," Resources and Energy, Elsevier, vol. 12(4), pages 383-398, December. [Downloadable!] (restricted)
  5. Maudos, Joaquin & Pastor, Jose Manuel & Serrano, Lorenzo, 2000. "Convergence in OECD Countries: Technical Change, Efficiency and Productivity," Applied Economics, Taylor and Francis Journals, vol. 32(6), pages 757-65, May. [Downloadable!] (restricted)
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  6. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November. [Downloadable!] (restricted)
  7. Price, Catherine Waddams & Weyman-Jones, Thomas G, 1996. "Malmquist Indices of Productivity Change in the UK Gas Industry before and after Privatization," Applied Economics, Taylor and Francis Journals, vol. 28(1), pages 29-39, January. [Downloadable!] (restricted)
  8. Hjalmarsson, Lennart & Veiderpass, Ann, 1992. " Productivity in Swedish Electricity Retail Distribution," Scandinavian Journal of Economics, Blackwell Publishing, vol. 94(0), pages S193-205, Supplemen.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Carlos Barros, 2005. "Governance and Incentive Regulation in Defence Industry Enterprises: A Case Study," European Journal of Law and Economics, Springer, vol. 20(1), pages 87-97, July. [Downloadable!] (restricted)
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