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Arms Trade Offsets: What Do We Know?

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Author Info

  • 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.

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File URL: http://carecon.org.uk/DPs/0910.pdf
File Function: First version, 2009
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Bibliographic Info

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 0910.

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Length: 18 pages
Date of creation: Jul 2009
Date of revision:
Handle: RePEc:uwe:wpaper:0910

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Keywords: Arms Offsets; defence; arms trade;

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Cited by:
  1. Larrú, José María, 2013. "The developmental contribution of the Offset Agreements: the case of Colombia," MPRA Paper 51456, University Library of Munich, Germany.

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