Military Procurement, Industry Structure and Regional Conflict
AbstractIn this paper, we construct a model of market structure in the global arms industry linking concentration, military procurement, international trade and regional conflict. We show how concentration depends on the willingness of producers to import for their military needs and on the relative size of the external market of non-producers. We show that there can be substantial gains to producers from cooperation in the procurement process, but also small gains to non-producers involved in regional arms races. Arms export controls that limit the level of technology that can be exported to non-producers distribute these cooperative gains from producers to non-producers.
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Bibliographic InfoPaper provided by Department of Economics, University of Kent in its series Studies in Economics with number 0502.
Date of creation: Feb 2005
Date of revision:
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Postal: Department of Economics, University of Kent at Canterbury, Canterbury, Kent, CT2 7NP
Phone: +44 (0)1227 764000
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Find related papers by JEL classification:
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
- L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-03-06 (All new papers)
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