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Military Procurement, Industry Structure and Regional Conflict

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Author Info
Paul Dunne
Maria del Carmen Garcia-Alonso ()
Paul Levine
Ron Smith

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Abstract

In 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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File URL: ftp://ftp.ukc.ac.uk/pub/ejr/RePEc/ukc/ukcedp/0502.pdf
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Publisher Info
Paper provided by Department of Economics, University of Kent in its series Studies in Economics with number 0502.

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Date of creation: Feb 2005
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Handle: RePEc:ukc:ukcedp:0502

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Postal: Department of Economics, University of Kent at Canterbury, Canterbury, Kent, CT2 7NP
Phone: +44 (0)1227 764000
Fax: +44 (0)1227 827850
Web page: http://www.ukc.ac.uk/economics/

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Related research
Keywords: military procurement; market structure; arms trade; arms races;

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Find related papers by JEL classification:
F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies
H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General

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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. Benassy, Jean-Pascal, 1996. "Taste for variety and optimum production patterns in monopolistic competition," Economics Letters, Elsevier, vol. 52(1), pages 41-47, July. [Downloadable!] (restricted)
  2. Maria del Carmen Garcia-Alonso & Paul Levine, 2005. "Strategic Procurement, Openness and Market Structure," Studies in Economics 0503, Department of Economics, University of Kent. [Downloadable!]
    Other versions:
  3. Skaperdas, Stergios, 1996. "Contest Success Functions," Economic Theory, Springer, vol. 7(2), pages 283-90, February.
    Other versions:
  4. Levine, Paul & Smith, Ron, 2000. "The Arms Trade Game: From Laissez-Faire to a Common Defence Policy," Oxford Economic Papers, Oxford University Press, vol. 52(2), pages 357-80, April.
  5. Michelle R Garfinkel & Stergios Skaperdas, 2001. "Conflict Without Misperceptions or Incomplete Information: How the Future Matters," Levine's Working Paper Archive 563824000000000011, David K. Levine. [Downloadable!]
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  6. Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June. [Downloadable!] (restricted)
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  7. Skaperdas, Stergios, 1991. "Conflict and Attitudes toward Risk," American Economic Review, American Economic Association, vol. 81(2), pages 116-20, May. [Downloadable!] (restricted)
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  8. J Paul Dunne & Maria Garcia Alonso & Paul Levine & Ron Smith, 2003. "Concentration in the International Arms Industry¤," Discussion Papers 0301, University of the West of England, Department of Economics. [Downloadable!]
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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. Javier Coto-Martinez & Maria del Carmen Garcia-Alonso & Paul Levine, 2005. "Taste for Variety and Optimum Product Diversity in an Open Economy," Studies in Economics 0508, Department of Economics, University of Kent. [Downloadable!]
    Other versions:
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