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What Lies Beneath? Who Owns British Defence Contractors and Does it Matter?

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  • Derek Braddon

    ()
    (School of Economics, University of the West of England)

  • Jonathan Bradley

    ()
    (School of Economics, University of the West of England)

Abstract

This paper presents the findings of research into the distribution of the rewards from capital used in defence production. Much existing research has examined the supply chain in the production of defence goods, but there have been few attempts to look at the ownership of suppliers. First, the paper examines two theoretical issues: why the identity of shareholders in defence contractors should have any economic or political significance, and whether the use of capital in defence industries should in principle be expected to be the same as that in any other industry. It then investigates the identity and ownership of the contractors concerned in 2003-4, using several case studies. It finds that many of the largest suppliers to the UK government are foreign-owned or controlled, and it finds evidence of a surprising degree of American equity participation in major British contractors.

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File URL: http://carecon.org.uk/DPs/0507.pdf
File Function: First version, 2005
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Paper provided by Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol in its series Working Papers with number 0507.

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Date of creation: Sep 2005
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Handle: RePEc:uwe:wpaper:0507

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  1. Derek Braddon, 2004. "The matrix reloaded - what future for the defence firm?," Defence and Peace Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 15(6), pages 499-507.
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