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Arms export controls and emerging domestic producers

Author

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  • Paul Levine
  • Fotis Mouzakis
  • Ron Smith

Abstract

The possibility of domestic production raises a difficulty for arms export control measures, since embargoes, by raising the effective price of imports, increase the incentive for domestic production. We address this issue by developing a partial equilibrium model of the international arms market We compare three arms export regimes involving the exporters of high-technology arms, with a particular focus on the effect of emerging domestic production: laissez-faire trade, the uncoordinated regulation of exports and a producer cartel consisting of coordinated regulation. The main conclusion is that the possibility of domestic production significantly changes the nature of these stylized export regimes.

Suggested Citation

  • Paul Levine & Fotis Mouzakis & Ron Smith, 2000. "Arms export controls and emerging domestic producers," Defence and Peace Economics, Taylor & Francis Journals, vol. 11(3), pages 505-531.
  • Handle: RePEc:taf:defpea:v:11:y:2000:i:3:p:505-531
    DOI: 10.1080/10430710008404963
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    References listed on IDEAS

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    1. Keith Hartley & Todd Sandler (ed.), 1995. "Handbook of Defense Economics," Handbook of Defense Economics, Elsevier, edition 1, volume 1, number 1.
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    Cited by:

    1. García-Alonso, María D.C. & Levine, Paul, 2008. "Strategic procurement, openness and market structure," International Journal of Industrial Organization, Elsevier, vol. 26(5), pages 1180-1190, September.
    2. María del Carmen García-Alonso & Paul Levine, 2005. "Arms Export Controls, Subsidies And The Wto Exemption," Scottish Journal of Political Economy, Scottish Economic Society, vol. 52(2), pages 305-322, May.
    3. Gangopadhyay Partha, 2014. "A Formal Model of Arms Market with Cash-for-Favours," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 20(3), pages 1-18, August.

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