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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. Todd Sandler, 1993. "The Economic Theory of Alliances," Journal of Conflict Resolution, Peace Science Society (International), vol. 37(3), pages 446-483, September.
    2. 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 357-380, April.
    3. Michael Brzoska, 1999. "Economic factors shaping arms production in less industrialized countries," Defence and Peace Economics, Taylor & Francis Journals, vol. 10(2), pages 139-169.
    4. Levine, Paul & Smith, Ron, 1997. "The arms trade and the stability of regional arms races," Journal of Economic Dynamics and Control, Elsevier, vol. 21(2-3), pages 631-654.
    5. Sandler,Todd & Hartley,Keith, 1995. "The Economics of Defense," Cambridge Books, Cambridge University Press, number 9780521447287.
    6. Levine, Paul & Smith, Ron, 1995. "The Arms Trade and Arms Control," Economic Journal, Royal Economic Society, vol. 105(429), pages 471-484, March.
    7. Keith Hartley & Todd Sandler (ed.), 1995. "Handbook of Defense Economics," Handbook of Defense Economics, Elsevier, edition 1, volume 1, number 1.
    8. Paul Levine & Ron Smith, 1997. "The arms trade," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 12(25), pages 336-370.
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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. Paul Levine & Ron Smith, 2000. "Arms Export Controls and Proliferation," Journal of Conflict Resolution, Peace Science Society (International), vol. 44(6), pages 885-895, December.
    3. Matthew Moore, 2010. "Arming the Embargoed: A Supply-Side Understanding of Arms Embargo Violations," Journal of Conflict Resolution, Peace Science Society (International), vol. 54(4), pages 593-615, August.
    4. 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.
    5. 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.
    6. Paul Dunne & Maria del Carmen Garcia-Alonso & Paul Levine & Ron Smith, 2007. "Determining The Defence Industrial Base," Defence and Peace Economics, Taylor & Francis Journals, vol. 18(3), pages 199-221.

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