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National Security or Private Profits? Trade in Dual-Use Commodities

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  • Denise Eby Konan

    ()
    (Department of Economics, University of Hawaii at Manoa)

  • Natalia Tabatchnaia-Tamirisa

Abstract

This paper develops a simple model of imperfectly competitive trade in commodities with both military and civilian applications, a.k.a. dual-use commodities. We consider the role of export barriers and foreign economic aid in encouraging peaceful rather than military application of dual-use commodities in importing countries. When governments conjecture the profit-shifting effect of their policies, Nash equilibrium policies combine export barriers and foreign aid.

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File URL: http://www.economics.hawaii.edu/research/workingpapers/88-98/WP_96-5.pdf
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Bibliographic Info

Paper provided by University of Hawaii at Manoa, Department of Economics in its series Working Papers with number 199605.

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Length: 29 pages
Date of creation: 1996
Date of revision:
Handle: RePEc:hai:wpaper:199605

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Keywords: dual-use commodities; national security; defense economics;

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