IDEAS home Printed from https://ideas.repec.org/p/uwe/wpaper/0910.html
   My bibliography  Save this paper

Arms Trade Offsets: What Do We Know?

Author

Listed:
  • Jurgen Brauer

    (Augusta State University)

  • J Paul Dunne

    (Department of Economics, British University in Egypt and UWE, Bristol)

Abstract

This chapter is a review of our empirical knowledge regarding arms trade offsets. Extant evidence suggests that offset arrangements do not yield net benefits for a country’s economic development. As a general rule arms trade offset deals are more costly than off-the-shelf arms purchases, create little by way of new or sustainable employment, do not appear to contribute in any substantive way to general economic development, and with very few exceptions do not result in significant technology transfers, not even within the military sector. As of 2009, the United States and the European Union have taken official government positions against offset deals. Nonetheless, arms trade offsets are a flourishing practice.

Suggested Citation

  • Jurgen Brauer & J Paul Dunne, 2009. "Arms Trade Offsets: What Do We Know?," Working Papers 0910, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
    • Handle: RePEc:uwe:wpaper:0910
    as

    Download full text from publisher

    File URL: http://carecon.org.uk/DPs/0910.pdf
    File Function: First version, 2009
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Keith Hartley & Todd Sandler (ed.), 2007. "Handbook of Defense Economics," Handbook of Defense Economics, Elsevier, edition 1, volume 2, number 1.
    2. Jurgen Brauer, 2002. "The Arms Industry in Developing Nations: History and Post-Cold War Assessment," Palgrave Macmillan Books, in: Jurgen Brauer & J. Paul Dunne (ed.), Arming the South, chapter 5, pages 101-127, Palgrave Macmillan.
    3. Brauer, Jurgen, 2007. "Arms Industries, Arms Trade, and Developing Countries," Handbook of Defense Economics, in: Keith Hartley & Todd Sandler (ed.), Handbook of Defense Economics, edition 1, volume 2, chapter 30, pages 973-1015, Elsevier.
    4. Jurgen Brauer, 2000. "Potential and actual arms production: Implications for the arms trade debate," Defence and Peace Economics, Taylor & Francis Journals, vol. 11(3), pages 461-480.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. J. Paul Dunne, 2017. "War, peace, and development," Economics of Peace and Security Journal, EPS Publishing, vol. 12(2), pages 21-31, October.
    2. Larrú, José María, 2013. "The developmental contribution of the Offset Agreements: the case of Colombia," MPRA Paper 51456, University Library of Munich, Germany.
    3. Vesa Kanniainen & Juha-Matti Lehtonen, 2019. "Offset Contracts as an Insurance Device in Building the National Security," Defence and Peace Economics, Taylor & Francis Journals, vol. 30(1), pages 85-97, January.
    4. Christopher Coyne, 2015. "Lobotomizing the defense brain," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 28(4), pages 371-396, December.
    5. Florian Johannsen & Inmaculada Martínez-Zarzoso, "undated". "Political Determinants of the Extensive and Intensive Margins of International Arms Transfers," Ibero America Institute for Econ. Research (IAI) Discussion Papers 228, Ibero-America Institute for Economic Research.
    6. Alshamy, Yahya & Coyne, Christopher J. & Goodman, Nathan, 2023. "Noxious government markets: Evidence from the international arms trade," Journal of Economic Behavior & Organization, Elsevier, vol. 205(C), pages 87-99.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Coyne,Christopher J., 2020. "Defense, Peace, and War Economics," Cambridge Books, Cambridge University Press, number 9781108724036.
    2. Alshamy, Yahya & Coyne, Christopher J. & Goodman, Nathan, 2023. "Noxious government markets: Evidence from the international arms trade," Journal of Economic Behavior & Organization, Elsevier, vol. 205(C), pages 87-99.
    3. David Kinsella, 2011. "The Arms Trade," Chapters, in: Christopher J. Coyne & Rachel L. Mathers (ed.), The Handbook on the Political Economy of War, chapter 12, Edward Elgar Publishing.
    4. Jurgen Brauer & J Paul Dunne, 2005. "Arms Trade Offsets and Development," Working Papers 0504, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
    5. John Paul Dunne, 2012. "Military Spending, Growth, Development And Conflict," Defence and Peace Economics, Taylor & Francis Journals, vol. 23(6), pages 549-557, December.
    6. Florian Johannsen & Inmaculada Martínez-Zarzoso, "undated". "Political Determinants of the Extensive and Intensive Margins of International Arms Transfers," Ibero America Institute for Econ. Research (IAI) Discussion Papers 228, Ibero-America Institute for Economic Research.
    7. Ghodsi, Mahdi & Karamelikli, Huseyin, 2022. "The Impact of Sanctions Imposed by the European Union against Iran on their Bilateral Trade: General versus Targeted Sanctions," World Trade Review, Cambridge University Press, vol. 21(1), pages 33-58, February.
    8. Keith Hartley & Peter MacDonald, 2010. "Country Survey Xxi: The United Kingdom," Defence and Peace Economics, Taylor & Francis Journals, vol. 21(1), pages 43-63.
    9. Amara, Jomana, 2008. "Military industrialization and economic development: Jordan's defense industry," Review of Financial Economics, Elsevier, vol. 17(2), pages 130-145.
    10. Darrell J. Glaser & Ahmed S. Rahman, 2017. "Development and Retention of Human Capital in Large Bureaucracies," Departmental Working Papers 60, United States Naval Academy Department of Economics.
    11. George Tridimas, 2010. "Constitutional judicial review and political insurance," European Journal of Law and Economics, Springer, vol. 29(1), pages 81-101, February.
    12. Hall Abigail R., 2015. "Drones: Public Interest, Public Choice, and the Expansion of Unmanned Aerial Vehicles," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 21(2), pages 273-300, April.
    13. Stergios Skaperdas, 2011. "The costs of organized violence: a review of the evidence," Economics of Governance, Springer, vol. 12(1), pages 1-23, March.
    14. Sanjeev Goyal & Adrien Vigier, 2014. "Attack, Defence, and Contagion in Networks," Review of Economic Studies, Oxford University Press, vol. 81(4), pages 1518-1542.
    15. repec:zbw:rwirep:0270 is not listed on IDEAS
    16. Bayer, Péter & Herings, P. Jean-Jacques & Peeters, Ronald, 2021. "Farsighted manipulation and exploitation in networks," Journal of Economic Theory, Elsevier, vol. 196(C).
    17. M. Christian Lehmann, 2022. "Fairness preferences as a cause of inefficient war," Journal of Behavioral Economics for Policy, Society for the Advancement of Behavioral Economics (SABE), vol. 6(1), pages 33-36, December.
    18. John R. Boyce & David M. Bruner, 2009. "Good Fences Make Good Neighbors: Endogenous Property Rights in a Game of Conflict," Working Papers 09-05, Department of Economics, Appalachian State University.
    19. Martin Philipp Heger & Eric Neumayer, 2022. "Economic legacy effects of armed conflict: Insights from the civil war in Aceh, Indonesia," Conflict Management and Peace Science, Peace Science Society (International), vol. 39(4), pages 394-421, July.
    20. Mehrdad Vahabi, 2011. "Appropriation, violent enforcement, and transaction costs: a critical survey," Public Choice, Springer, vol. 147(1), pages 227-253, April.
    21. J. Paul Dunne † & Sam Perlo-Freeman ‡ & Aylin Soydan §, 2004. "Military expenditure and debt in small industrialised economies: A panel analysis," Defence and Peace Economics, Taylor & Francis Journals, vol. 15(2), pages 125-132, April.

    More about this item

    Keywords

    Arms Offsets; defence; arms trade;
    All these keywords.

    JEL classification:

    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:uwe:wpaper:0910. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jo Michell (email available below). General contact details of provider: https://edirc.repec.org/data/seuweuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.