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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

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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Bibliographic 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

Contact details of provider:
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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References

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  1. Maria Garcia-Alonso & Paul Levine, 2004. "Strategic Procurement, Openness and Market Structure," School of Economics Discussion Papers 0904, School of Economics, University of Surrey.
  2. Benassy, Jean-Pascal, 1996. "Taste for variety and optimum production patterns in monopolistic competition," Economics Letters, Elsevier, vol. 52(1), pages 41-47, July.
  3. Dixit, Avinash K & Stiglitz, Joseph E, 1975. "Monopolistic Competition and Optimum Product Diversity," The Warwick Economics Research Paper Series (TWERPS) 64, University of Warwick, Department of Economics.
  4. Mary Carmen Garcia-Alonso, 1999. "Price competition in a model of arms trade," Defence and Peace Economics, Taylor and Francis Journals, vol. 10(3), pages 273-303.
  5. Skaperdas, Stergios, 1991. "Conflict and Attitudes toward Risk," American Economic Review, American Economic Association, vol. 81(2), pages 116-20, May.
  6. 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.
  7. Skaperdas, Stergios, 1996. "Contest Success Functions," Economic Theory, Springer, vol. 7(2), pages 283-90, February.
  8. 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.
  9. Garfinkel, M.R. & Skaperdas, S., 2000. "Conflict without Misperceptions or Incomplete Information: how the Future Matters," Papers 99-00-11, California Irvine - School of Social Sciences.
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Cited by:
  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.

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